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First National Bank pays 6.1% interest compounded semiannually. Second National Bank pays 6% interest compounded monthly. Calculate the effective annual rate for each bank. Note:

First National Bank pays 6.1% interest compounded semiannually. Second National Bank pays 6% interest compounded monthly.

Calculate the effective annual rate for each bank.

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

Which bank offers the higher effective annual interest rate?

multiple choice

First National Bank

Second National Bank

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