38) 6 points. Camden Ceramics is considering pledging its receivables to obtain needed cash for the holiday season. A local finance company will lend 75 percent of the pledged receivables at 2 percentage points over LIBOR which is currently 8 percent. In addition the finance company charges a service fee of 1 percent. Interest and fees are paid at the end of the period. Camden's average collection period is 47 days and it has $400,000 of receivables that the finance company will accept as collaterial. What is the annual financing costs (AFC) for this funding? 8