Under a factoring arrangement Ranki Factors Services Limited has advanced a sum of ₹140 lakh against the receivable purchased from Aangi Limited. The factoring agreement provides for an advance payment of 80% (maintainin

Under a factoring arrangement Ranki Factors Services Limited has advanced a sum of ₹140 lakh against the receivable purchased from Aangi Limited. The factoring agreement provides for an advance payment of 80% (maintaining factor reserve of 20% to provide for disputes and deductions relating to the bills assigned) of the value of factored receivable and for guaranteed payment after three months from the date of purchasing the receivables. The advance carries a rate of interest of 12% per annum compounded quarterly and the factoring commission is 2.5% of the value of factored receivables. Both the interest and commission are collected upfront. You are required to: (i) Compute the amount of advance payable to Aangi Limited.