?(Cost of factoring?) A factor has agreed to lend the JVC Corporation working capital on the following? terms: JVC's receivables average ?$95 comma 00095,000 per month and have a? 90-day average collection period.? (Note that? JVC's credit terms call for payment in 90? days, and accounts receivable average ?$285 comma 000285,000 because of the? 90-day average collection? period.) The factor will charge 13.2013.20 percent interest on any advance ?(1.11.1 percent per month paid in? advance) and a 22 percent processing fee on all receivables factored and will maintain a 2222 percent reserve. If JVC undertakes the? loan, it will reduce its own credit department expenses by ?$2 comma 0002,000 per month. What is the annual effective rate of interest to JVC on the factoring? arrangement? Assume that the maximum advance is taken. Note?: Assume a? 30-day month and? 360-day year.