The Magic Pumpkin Limousine Company wants to purchase a car entertainment system for one of its automobiles. The entertainment system vendor has offered to finance the $2,000 purchase over one year in 12 installments, with a total of $200 in interest to be paid on the loan. What is the effective rate on this loan?
a. 18.5%
b. 19%
c. 19.5%
d. 18%