Charming Paper Company sells to the 12 accounts listed here. TT Average Age of the Account Receivable Balance Outstanding $ 60,800 172,000 76,100 29,400 58,300 238,000 33,800 367,000 Over the Last Year Account A 22 44 C 14 59 43 36 G 18 H 70 43,500 99,300 241,000 63,200 38 51 K 14 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 17.50 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. $ Maximum loan amount 851,860 b. Determine how much one month's 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 14,197.67