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 6.8%, 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?

a. 2.07% b. 1.71% c. 2.00% d. 1.73% e. 2.12%