On the last day of December during the current year, Tech Products transferred receivables with a face value of $40,000 to Duval Bank. The transfer was with recourse, and Tech Products agreed to accept responsibility for any of the receivables that were uncollectible. It is estimated the receivables will be collected within 60 days. The bank charged a flat factoring fee of 2% and agreed to advance funds at an annual rate of 4.5%. The factor held back $1,600 as a standard bank procedure to cover uncollectibles and remitted the balance in cash to Tech Products. 

What is the total cost to Tech Products related to the factoring of the receivables to Duval Bank?