b$.$ Under an advance factoring arrang Differentiate between factoring and forfaiting. Tk$.12$ lakh against the receivables BFL Co$.$ has agreed to advance a sum of agreement provides for an advance purchased from XYZ co$.$ The factoring receivables and for guaranteed payment of $85\%$ of the value of factored purchasing the receivables. The payment after three months from the date of Compounded quarterly and the advance carries a rate of interest of $13\%$ factored receivables. B the value of

I. Compute the ame interest and commission are colected upfront.

II$.$ Caiculate the available to XYZ Co$.$

III. Assume the cost of funds made available to XYZ CO$.$ collected in the interest is collected in arrear and the commission is to $xYZ$ Co$.$