A company factors $500,000 of accounts receivable on a with recourse basis. The fair value of the recourse provision is $20,000. The factor retains 5% of the receivables to cover possible future sales discounts, returns, and allowances. The company receives $460,000 cash in the initial transaction. What percentage of the receivables did the factor assess as a finance charge? a. 3% b. 4% c. 7% d. 8%