You have just taken out a 10-year, $12,075 loan to purchase a new car. This loan is

Question:

You have just taken out a 10-year, $12,075 loan to purchase a new car. This loan is to be repaid in 120 equal end-of-month installments. If each of the monthly installments is $150, what is the effective annual interest rate on this car loan?
a) 6.5431%
b) 7.8942%
c) 8.544%
d) 8.8871%
e) 9.0438%