At Bank A, a $100,000 loan for one year has a quoted interest rate of 11.60% payable annually but with a compensating balance of 15%. At Bank B, a $100,000 discount loan has a quoted interest rate of 8.60% payable annually. The loan at Bank B is ____ per year cheaper than that at Bank A.

a. 1.41%

b. 4.24%

c. 5.93%

d. 2.12%

e. 5.09%