Hyper Retail Outlets sell goods on terms of net 40. The​ store's average monthly sales​ (all on​ credit) are​ $70,000. Hyper pledges all of its receivables to the​ bank, which advances​ 80% of the face value of the receivables at a rate of​ 2.5% above prime. The bank also charges a​ 1% processing fee on all receivables pledged. Hyper borrows the full amount​ possible, and the current prime rate is​ 5%. What is the annual percentage rate​ (APR) of using this source of financing for one full​ year?
A. ​23.5%
B. 21.8%
C. ​19.1%
D. 18.75%