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3. An exporter has recently factored its accounts receivable at a rate of $10,000 a month. The factor advances 80 percent of the receivables, charges

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3. An exporter has recently factored its accounts receivable at a rate of $10,000 a month. The factor advances 80 percent of the receivables, charges 1 percent interest per month on advances, and charges a 3 percent factoring fee. The interest and fee are paid on a discount basis. a. Determine the net proceeds to the exporter. b. Determine the effective annual cost of this financing arrangement

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