Titusville Petroleum Company is considering pledging its receivables to finance an increase in working capital. Citizens National Bank will lend the

company $85$ percent of the pledged receivables at $3$ percentage points above the prime rate $($currently $7\%).$ The bank charges a service fee equal

to $1\mathrm{.}2$ percent of the pledged receivables. The interest costs and the service fee are payable at the end of the borrowing period. Titusville has $$1$

million in receivables that can be pledged as collateral. The average collection period is $60$ days. Assume that there are $365$ days per year.

Determine the annual financing cost to Titusville of this receivables$-$backed loan. Round your answer to two decimal places.

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