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Luther Industries is offered a $1 million dollar loan for four months at an APR of 9%. If this loan has an origination fee of

Luther Industries is offered a $1 million dollar loan for four months at an APR of 9%. If this loan has an origination fee of 1%, then the effective annual rate (EAR) for this loan is closest to ________.

A. 12%

B. 13.8%

C. 4.1%

D. 12.6%

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