Question: A company needs $575,000 million for 8 months. The company have arranged with the bank to have the loan secured by its accounts receivable. The

A company needs $575,000 million for 8 months. The company have arranged with the bank to have the loan secured by its accounts receivable. The bank has agreed to advance this company 85 percent of the value of its pledged receivables at a rate of 6.75 percent plus a 1.25 percent fee based on all receivables pledged. This companys receivables average a total of $600,000 year-round. What is the APR for this loan?

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