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First National Bank pays 6.5% interest compounded semiannually. Second National Bank pays 6% interest compounded monthly. Calculate the effective annual rate for each bank. (Do

First National Bank pays 6.5% interest compounded semiannually. Second National Bank pays 6% interest compounded monthly.

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 %

Which bank offers the higher effective annual rate?
First National Bank
Second National Bank

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