You are going to buy a new car worth $14 500. A car dealer computes your monthly payment to be $267 for 7-year financing. What is the dealer's effective annual rate of return on this loan?

A) 9.33%

B) 9.77%

C) 10.23%

D) 10.67%

E) 11.33%

I don't understand how they get B. If you can show a step-by-step guide that would be great.