Kenneth's Arrows and Bows borrows $10,000 for one year at an 8% annual interest rate. What is the effective rate of interest if the loan is discounted? Note: Use 360 days in a year.

a.More than 9.8%

b. More than 7.8% but less than 8.9%

c. Less than 7.8%

d.More than 8.9% but less than 9.8%