First National Bank pays 6.1% interest compounded semiannually. Second National Bank pays 6% interest compounded monthly. a. Calculate the effective annual rate for each bank. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Effective Annual Rate First National Bank Second National Bank b. Which bank offers the higher effective annual rate? First National Bank Second National Bank Find the effective annual interest rate for each case. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Compounding Effective Annual APRO Period Rate 1 month 3 months 6 months Find the APR (the stated interest rate) for each case. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) APR Effective Annual Compounding Interest Rate Period 17.46% 1 month 7.23 6 months 10.60 3 months Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $73,000 at age 65, the firm will pay the retiring professor $425 a month until death. a. If the professor's remaining life expectancy is 20 years, what is the monthly interest rate on this annuity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Monthly rate on annuity % b. What is the effective annual interest rate? (Use the monthly rate computed in part (a) rounded to 2 decimal places when expressed as a percent. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate c. If the monthly interest rate is 1.00%, what monthly annuity payment can the firm offer to the retiring professor? (Do not found intermediate calculations. Round your answer to 2 decimal places.) Monthly annuity payment