Concert Division Reported a Residual Income of $200,000 for the Year

Concert Division reported a residual income of $200,000 for the year just ended. The division had $8,000,000 of invested capital and $1,000,000 of income. On the basis of this information, the imputed interest rate was:

A) 2.5%.
B) 10.0%.
C) 12.5%.
D) 20.0%.
E) None of the answers is correct.