Wentworth Greenery Harvests Its Crops Four Times Annually and Receives

Multiple Choice

Wentworth Greenery harvests its crops four times annually and receives payment for its crop 90 days after it is picked and shipped.However, the firm must plant, irrigate, and harvest on a near continual schedule.The firm uses 90-day bank notes to finance its operations.The firm arranges an 11 percent discount interest loan with a 20 percent compensating balance four times annually.What is the effective annual rate of these discount loans?

A) 11.00%
B) 15.94%
C) 11.46%
D) 13.75%
E) 12.72%