8. Farmers Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. Merchants Bank offers to lend you the $50,000, but it will charge 5.7%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks? 0.59% 0.54% 0.58% 0.61% 0.74%