In a recent founder and CEO commented, "...Our capital and companies, because we are not dependent on banks for capital and do not have a brick and mortar structure..." MicroGrain lends money to rural entrepreneurs at interest rates ranging between 10 per cent and 15 per cent as compared to traditional microfinance rates of 24 per cent to 36 per cent. Repayment rate among borrowers is 96% and increasing over time. Using the break even R formula we discussed in class, how can you explain the lower rates charged by MicroGrain compared to other organizations? Farming Times article, a new online lending platform called MicroGrain was reviewed. The operating costs are half of traditional microfinance k gross cost of bank q-percentage of safe borrower R bank rate p probability of obtaining revenue (0xp1) a. R is higher because k is higher O D. R is lower because k is lower Di c k is higher and q is lower O d. k is lower and q is lower