Use the Information for the Question(s)below

Multiple Choice

Use the information for the question(s) below.
Your firm needs to invest in a new delivery truck.The life expectancy of the delivery truck is five years.You can purchase a new delivery truck for an upfront cost of $200,000,or you can lease a truck from the manufacturer for five years for a monthly lease payment of $4000 (paid at the end of each month) .Your firm can borrow at 6% APR with quarterly compounding.
-The effective annual rate for a credit card that charges a 19.9% APR compounded daily is closest to:

A) 18.15%.
B) 19.90%.
C) 22.01%.
D) 24.20%.