Accounts receivable financing [LO8-1]

Charming Paper Company sells to the 12 accounts listed here.

Account	Receivable Balance Outstanding	Average Age of the Account Over the Last Year
A	$ 63,700	20
B	197,000	44
C	74,400	16
D	23,600	61
E	59,600	43
F	318,000	39
G	33,300	17
H	309,000	67
I	46,600	33
J	90,300	52
K	277,000	15
L	65,900	39

Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan.

The current prime rate is 16.50 percent, and Capital charges 3.50 percent over prime to Charming as its annual loan rate.

1. Determine the maximum loan for which Charming Paper Company could qualify.

1. Determine how much one months interest expense would be on the loan balance determined in part a.

Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.

step by step process and explan how to determine the eligible loan amount by percent

thank you