LoDo Tiles Inc. is considering factoring its receivables. The company$$s average collection period is $55$ days, and its average level of receivables is $$750,000.$ The factor has indicated that it requires a $15\%$ reserve for returns and allowances, and charges a $2\mathrm{.}5\%$ factoring commission, with the commission to be paid up front. The factor will advance LoDo Tiles funds at $2\mathrm{.}0$ percentage points over the prime lending rate, which is currently $5\mathrm{.}0\%.$ Interest is to be paid up front. Determine the effective annual rate of the factoring. Assume $365$ days in a year.

Group of answer choices

$26\mathrm{.}8\%$

$25\mathrm{.}6\%$

$30\mathrm{.}8\%$

$33\mathrm{.}4\%$