During the next four months, a furniture manufacturer will be entering its holiday season. Management expects commercial

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During the next four months, a furniture manufacturer will be entering its holiday season. Management expects commercial trade receivables to reach $900,000 and will be seeking a bank loan that will finance 60% of the receivables. The bank charges 8% and an additional 1% service fee of the pledged trade receivables. The average collection period is 45 days. Calculate the company’s APR for the pledged trade receivables.
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