Use accounts receivable as collateral to borrow money

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Many small companies use accounts receivable as collateral to borrow money for continuing operations and meeting payrolls. If a company borrows $230,000 now at an interest rate of 16.00% per month, but the rate changes to 18.00% per month after 6 months, how much will the company owe at the end of 1 year?

Reference no: EM13739789

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