Assume inflation is 0.24% per month. Would you rather earn a nominal return of 0.74% per month, compounded monthly, or a real return of 6.57% APR, compounded annually?

(Note: Be careful not to round any intermediate steps less than six decimal places.)

The annual rate for the nominal return of 0.74% per month is ___.

(Type your answer in decimal format. Round to six decimal places.)

The nominal annual rate for the real return of 6.57% APR is ___.

(Type your answer in decimal format. Round to six decimal places.)

Based on a comparison of the two rates, and the current inflation rate, you would prefer the _____ option over the _____ option.