Cliff Capital Corporation (CCC) is taking out a new 2-year bank loan for $100,000 at 6% interest (APR monthly compounding). The bank charges 1% closing fees on the loan. If CCC pays off the loan in equal monthly installments, then what is the effective annual interest rate of this loan?

Select one:

a.

6.17%

b.

6.67%

c.

6.99%

d.

7.22%

e.

None of the above.