Your company needs an additional $200 million in funds to finance peak season sales for six months. The company treasurer has recommended offering 2,000 (two thousand) 180-day promissory notes each with a face value of $100,000 and at a discount of $3,795.47 per note. What is the annual percentage cost of this short term facility?

Select one:

A.

8%

B.

10%

C.

4%

D.

None of these