Charmin Paper Company sells to the 12 accounts listed next.

Account	Receivable Balance Outstanding			Average Age of the Account Over the Last Year
A	$	60,800			22
B		168,000			43
C		78,300			19
D		24,300			55
E		58,900			42
F		238,000			39
G		30,400			16
H		374,000			72
I		41,400			32
J		96,500			58
K		292,000			17
L		67,700			37

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 15.5 percent, and Capital charges 4.5 percent over prime to Charmin as its annual loan rate.

a.	Determine the maximum loan for which Charmin Paper Company could qualify.

Maximum loan amount

$

b.	Determine how much one months interest expense would be on the loan balance determined in part a.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Interest expense

$