If a bank offers a firm a simple interest loan of 1000 for 120-14000

If a bank offers a firm a simple interest loan of $1000 for 120 days at a cost of $60 interest, what is the effective rate of interest on the loan?

This multiple choice question (MCQ) is related to the book/course vu mgt201 Financial Management. It can also be found in vu mgt201 Final Term - Quiz No.19.