What is the total cost of this financing arrangement

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Reference no: EM131970811

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?

Reference no: EM131970811

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