Suppose you borrow $2,500,000 from a bank for one-half year at a stated annual interest rate of 14 percent, with interest prepaid (a discounted loan). Also assume that the bank requires you to maintain a compensating balance equal to 20 percent of the initial loan value. What effective annual interest rate are you being charged?

a. 14.00%

b. 9.59%

c. 19.18%

d. 21.21%