Marla Maple Sugar Company sells to the 12 accounts listed below.

AccountReceivable

balance outstandingAverage age of

the account

over the last yearA$62,60025B176,00043C72,90018D24,20058E56,40042F313,00032G35,40023H394,00073I48,20038J94,10059K305,00015L62,70037

Trump 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 as adequate accounts for a loan.

The current prime rate is 12.50 percent, and Trump Financial Corporation charges 3.50 percent over prime to Marla Maple Sugar Company as its annual loan rate.

a.Determine the maximum loan for which Marla Maple Sugar Company could qualify.

Maximum loan amount$

b.Determine how much one month's interest expense would be on the loan balance determined in parta.(Round the final answer to 2 decimal places.)

Interest expense$??????/