A Chinese exporter sells $200,000 of toys to a French importer. The Chinese exporter requires the French importer to obtain a letter of credit. When the bank accepts the draft the exporter discounts the 90-day note at a 4% discount. What is the exporter's true effective annual financing cost?

A. 4.00%

B. 4.04%

C. 4.10%

D. 4.16%

E. 4.22%