I came across this question and I can’t wrap my head around it.

A hedge fund begins the year with $120m and earns a 25% return for the year. The fund charges 1.5% management fee on end of year value and a 15% incentive fee on the return, net of management fees that is in excess of 6% fixed hurdle rate. The fund’s investors’ return for the year is closest to

A) 21.25%

B) 20.56%

C)19.66%

Can someone please walk me through this problem?