The turnover of xyz ltd is 90 lakhs of which 80 percent is on credit. debtors are allowed one month to clear off the dues. a factor is willing to advance 90 percent of the bills raised on credit for a fee of 2 percent a month and a commission of 4 percent of total amount of debts. R co lts as a result of this arrangement is likely to save rs 36ooo annually in management costs and avoid the bad debts at 1 percent on the credit sales. Find the cost of factoring?