Problem $8-27($Algo$)$ Accounts receivable financing $[$LO$8-1]$

Charming Paper Company sells to the $12$ accounts IIsted here.

$\backslash$table$[[,\backslash$table$[[$Receivable Balance$],[$Outstanding$]],\backslash$table$[[$Average Age of the$],[$Account$],[$Over the Last$],[$Year$]]],[$Account$,$$$63,600,25],[$A$,133,000,43],[$B$,73,300,19],[$C$,29,100,57],[$D$,56,100,42],[$E$,253,000,39],[$F$,33,400,24],[$G$,349,000,67],[$H$,45,300,32],[$I$,90,600,59],[$J$,237,000,15],[$K$,61,000,37],[$L$,,],[,,]]$

Capital Financlal 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 $12\mathrm{.}50$ percent, and Capital charges $4\mathrm{.}50$ percent over prime to Charming as its annual loan rate.

a$.$ Determine the maximum Ioan for which Charming Paper Company could qualify.

Maximum loan amount

b$.$ Determine how much one month's interest expense would be on the loan balance determined in part a$.$ Note: Do not round Intermedlate calculations. Round your final answer to $2$ decimal places.

Interest expense