H&M Corporation want to offer credit, with interest on outstanding balances paid monthly, to your customers. To carry receivables, H&M must borrow funds from its bank at a nominal 6%, monthly compounding. To offset its overhead, H&M wants to charge its customers an EAR (EFF%) that is 4% more than the bank is charging H&M. What APR rate should H&M charge its customers?

7.21%

9.72%

10.00%

8.63%