You Take Out a 2-Year, $5,000 Loan at 7% Simple $r = 100 \%$

Multiple Choice

You take out a 2-year, $5,000 loan at 7% simple annual interest. The lender charges you a $300 fee. Thinking of the fee as additional interest, what is the actual annual interest rate you will pay Round answer to the nearest 0.001% .

A) $r = 100 \%$
B) $r = 2.06 \%$
C) $r = 6 \%$
D) $r = 10 \%$
E) $r = 0.127 \%$