A firm often factors its accounts receivable. Its finance company requires a 6% reserve and charges a 1.4% commission on the amount of the receivables. The remaining amount to be advanced is further reduced (after reserve and charges) by an annual interest charge of 15%. What proceeds will the firm receive from the finance company at the time a P 100,000 account due in 60 days is factored?

Multiple choice

a. 85,000

b. 90,285

c. 92,600

d. 96,135