Jim's Electrical is offered a $400,000 loan for six months at an APR of 9%. The bank requires that the firm keep an amount equal to 5% of the loan principal in a non-interest-earning account with the bank as long as the loan remains outstanding. What is the actual six-month interest rate paid, expressed as an EAR?

A).

4.7%

B).

5.0%

C).

24.3%

D).

9.7%