Question 9 DPM Sdn. Bhd. is considering factoring its receivables. The firm has credit sales of RM400,000 per month per month and has an average receivables balances of RM800,000 with 60-day credit terms. The factor has offered to extend credit equal to 90% of the receivables factored less interest on the loan at a rate of 1.5% per month, 1% factoring fee plus a 9% reserve. DPM Sdn. Bhd. can reduce its credit department costs by RM1,500 a month by factoring its receivables. What is the cost of borrowing through the factoring agreement