A firm is planning to borrow $12,000 from the bank. The bank offers the choice of a 12 percent discount interest loan or a 10.9 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the approximate (nominal) interest on the 10.19 percent add-on loan?

Choices are a) 5.10%; b) 10.19%; c) 12%; d) 20.38%; e) 30.57%