1954 AHSME Problem 33

A bank charges \${6} for a loan of \${120}. The borrower receives \${114} and repays the loan in 12 easy installments of \${10} a month. The interest rate is approximately:

\textbf{(A)}\ 5 \% \qquad \textbf{(B)}\ 6 \% \qquad \textbf{(C)}\ 7 \% \qquad \textbf{(D)}\ 9\% \qquad \textbf{(E)}\ 15 \%

Full credit goes to MAA for authoring these problems. These problems were taken on the AOPS website.