Average level of receivables is Rs 50,000. The factor charges 2% commission and provides advances up to 80% of the receivables for 90 days at 18% interest rate. Find out the net cost of factoring or...

Average level of receivables is Rs 50,000. The factor charges 2% commission and provides advances up to 80% of the receivables for 90 days at 18% interest rate. Find out the net cost of factoring or the effective rate of advances provided by the factor.