Charming Paper Company sells to the 12 accounts listed here.

Account	Receivable Balance Outstanding			Average Age of the Account Over the Last Year
A	$	69,400			20
B		140,000			44
C		78,900			17
D		21,500			61
E		50,800			43
F		261,000			37
G		39,200			24
H		369,000			71
I		44,700			34
J		90,800			53
K		223,000			20
L		68,900			35

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 9.50 percent, and Capital charges 3.50 percent over prime to Charming as its annual loan rate. a. Determine the maximum loan for which Charming Paper Company could qualify. 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.)