A bank faces two types of borrowers, A and B, both who request a $100 loan. A will repay the loan with probability 0.92 and default otherwise, while B will repay the loan with probability 0.85 and default otherwise. The bank cannot observe type, but knows that fraction 0.84 of borrowers are type A and the rest are type B. What is the competitive pooling interest rate? Please explain, thank you!

A) 10%

B) 8.6%

C) 6.1%

D) 4,5%