A business accepted a note of $7,000 plus a $500 service fee to be paid in 12 months. Not long after, the business arranged for a local bank to purchase the debt for a factoring fee of 3 percent. What was the cash amount of the factoring fee?

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The Answer of A business accepted a note of $7,000 plus a $500 service fee to be paid in 12 months. Not long after, the business arranged for a local bank to purchase the debt for a factoring fee of 3 percent. What was the cash amount of the factoring fee?

A Business Accepted a Note of $7,000 Plus a $500