Mathematics · Financial Mathematics and Factoring Calculations

A bank is processing a Factoring advance arrangement for a corporate client on invoices worth ₹50,00,000 due in 90 days. The terms are as follows: * Factoring Advance Rate: 80% of invoice value * Annual Advance Interest Rate: 12% per annum (calculated on advance amount for 90 days based on a 360-day year) * Factoring Commission: 1% of total invoice value * KYC Processing Fee: 0.5% of total invoice value Calculate the net amount received by the client on Day 1 after deduction of the advance interest, commission, and processing fee from the advance.