A firm is considering using a field warehousing arrangement as part of its short-term financing. The field warehouse requires a once-ayear payment of $10,000, paid at the beginning of the year, no matter how much the firm borrows. Interest on the loan is a single payment of 10% per year, paid at the end of the year. What is the effective annual cost of borrowing using field warehousing if the amount borrowed is:

a. $150,000?

b. $200,000?

c. $300,000?

d. $500,000?