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.

a. Determine the maximum loan for which Charming 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 =