A corporation wants to borrow $4 million for six months at a stated annual rate of 8%, using its inventory as collateral. The lender does not require a waterhouse arrangement. What is the effective annual interest rate of this loan? (Hint: use 4 decimals for your calculations.) A. 13.40%. B. 8.16%. C. 9.30%. D. 7.16%. E. None of the above