Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 17.75%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan?

a. 19.73%

b. 21.43%

c. 20.10%

d. 16.50%

e. 18.97%