The York Company has an average receivables balance of $55,000, which turns over once every 30 days. It offers all of its receivables to its bank as collateral for short term borrowing (pledging). The bank generally accepts 60% of the accounts offered and advances cash equal to 85% of those. Interest is 3% over prime and the bank charges a 1% administrative fee on the gross value of all accounts offered. The prime rate is currently 9.5%. What effective rate is York paying for its receivables financing?