5.3. Factoring Blue's Venison Vendors factors all its accounts receivables. The factoring agreement they have concluded with ABC Bank is: A10% reserve is held. A 3% commission is charged on the book value of the account. Further interest is charged at 2% per month (24% per annum) on advances. * Blue wants to factor an account of R8 000 that falls due in 30 days 5.3.1. 5.3.2. What is the advance that Blue will receive? What is the net cost to Blue