Suppose that Community Bank offers to lend you $10,000 for one year at a nominal interest rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate of the loan?
a. 8.24%
b. 8.45%
c. 8.66%
d. 8.88%
e. 9.10%
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