6 Fidelity Investments offers loans of $50,000 at a nominal rate of 7.5%, that is compounded monthly. The loan, principal + interest, has to be repaid at year end. Then Commerce Bank also offers $50,000 loans, but they will charge an annual rate of 9.8%, without interest until the end of the year.

How much higher or lower is the effective annual rate charged by Commerce Bank versus the rate charged by Fidelity Investments?