12. The Ohio Valley Steel Corporation has borrowed $997095 for three months at a stated annual rate of 10% per annum, using inventory stored in a field warehouse as collateral. The warehouse charges a $12 000 fee, payable at the end of the three months. The effective annual rate on this loan is closest to:

Select one:

a. 14.81%

b. 15.16%

c. 3.70%

d. 15.66%