Bank A offers to lend a firm funds for an expansion, at a nominal rate of 8%, compounded monthly. Bank B will charge 9%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks?

a. 0.25%

b. 0.50%

c. 0.70%

d. 1.00%

e. 1.25%

if a financial calculator used please show steps!!!