Suppose People's Bank Offers to Lend You $10, 000 for 1

Multiple Choice

Suppose People's bank offers to lend you $10, 000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year.What is the effective annual rate on the loan?

A) 8.46%
B) 8.90%
C) 9.37%
D) 9.86%
E) 10.38%