Multiple Choice
LMN Co.plans to enter into a secured term loan by assigning its receivables of $600,000 with an average maturity date of 30 days.The finance company will loan 75% of the receivables value at 11% interest plus a service fee of 0.05% of the total receivables pledged.What is the total cost of this financing arrangement?
A) $3,039
B) $3,872
C) $4,049
D) $4,368
Correct Answer:
Verified
Correct Answer:
Verified
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