Fruit of the Loom sells $10 million in accounts receivable to a factor. The receivables are due in 90 days. The factor charges a 2 percent per month factoring fee, as well as the face amount, for purchasing the accounts receivable from Fruit of the Loom on a nonrecourse basis.

a. How much will Fruit of the Loom receive for its receivables?

b. What is the all-in cost of the acceptance?