Please answer the following:

Question 6 (1 point) In order to faster convert AR into cash, a company can sell its accounts receivable to another company, called a factor, at a discount. Assume your average credit sales are $100 million per year and average accounts receivable are $12.5 million. A factoring company offers you an agreement that it will be buying your accounts receivable at a 1.98% discount. Your bank offers you a credit at R% per year (actual yearly rate). What would be the minimum R\% for which you would choose factoring? That is, what is the rate R% offered by the bank at or below which you would rather borrow money from the bank instead of factoring? (Hint: Refer to the Factoring Practice Problem. Assume 360 days in a year.) Answer should be a number given as a \%. That is, for example 3.18% should be answered as 3.18 rather than 3.18% or 0.0318. Your