Find the net cost of factoring if average size of receivables amounts to Rs 1,00,000; and the factor charges 2% commission and provides advances up to 75% of the receivables for 90 days at 15%...

Find the net cost of factoring if average size of receivables amounts to Rs 1,00,000; and the factor charges 2% commission and provides advances up to 75% of the receivables for 90 days at 15% interest rate. On the other hand, factoring saves administrative and collection cost and also bad debt losses which are expected to be Rs 5,000.