Leo is going to the Bank of Montreal for a student loan. He knows that the posted rate is not the true rate as the bank's nominal rate is expressed on an annual basis and does not take into account the effect of compounding over the course of the loan. Leo wants to know what the effective annual interest rate on a $$10,000$ loan would be if it charges $5\%$ interest, compounded quarterly, and a $$300$ administration fee up$-$front?

Question $29$ Select one:

a$.$

$4\mathrm{.}94\%$

b$.$

$5\mathrm{.}25\%$

c$.$

$5\mathrm{.}09\%$

d$.$

$4\mathrm{.}92\%$