After Toby graduates from University, he wants to reward himself by purchasing a new Brompton bicycle for $7550. Since Toby has no money, he plans to take a bank loan. The bank agrees to give him 24 months loan with 8.09 percent annual interest rate compounded quarterly. What is the effective annual rate on this loan?

Select one:

8.25 percent

8.41 percent

8.34 percent

8.40 percent