Nexco, Inc. is considering factoring its accounts receivable. Factorco, Inc. has offered the following terms for accounts receivable due in 30 days:

Value of receivables to be held in reserve for contingencies 10%
Following costs are deducted at time accounts are factored:
Interest rate on amounts provided (annual rate) 12%
Factor fee on total receivables factored 2%

If Nexco plans to factor $200,000 of accounts receivable due in 30 days, which one of the following is the amount it will receive from Factorco at the time the accounts are factored?
A. $154,880
B. $174,240
C. $176,000
D. $196,000