MGT203 - Assignment 2 - Accounts receivable financing Charming Paper Company sells to the 12 accounts listed here. Average Age of the Account Receivable Over the Last Account Balance Outstanding Year A $ 66,800 25 154,000 42 77,800 14 21,800 56 52,100 42 254,000 35 35,600 20 392,000 66 44,100 38 92,800 58 263,000 23 68,900 36 Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. The current prime rate is 16.50 percent, and Capital charges 4.50 percent over prime to Charming as its annual loan rate. a. Determine the maximum loan for which Charming Paper Company could qualify. (Show your calculation) b. Determine how much one month's interest expense would be on the loan balance determined in part a. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)