A Company maintains permanent current assets for Rs 1,20,000. Its variable current assets vary between zero and Rs 5,00,000 with an average of Rs 1,50,000. Short terms funds are available at 10%...

A Company maintains permanent current assets for Rs 1,20,000. Its variable current assets vary between zero and Rs 5,00,000 with an average of Rs 1,50,000. Short terms funds are available at 10% interest rate and long-term funds are available at 15% interest rate. Find out the total cost of financing the current assets on the assumption that the company follows a matching approach—financing permanent current assets with-long term funds and the variable part with short-term funds.