First Trust offers personal loans at 7.7 percent compounded monthly. Second Bank offers similar loans at 7.75 percent compounded semiannually. Which one of the following statements is correct concerning these loans?

		The First Trust loan has an effective rate of 7.98 percent.
		The Second Bank loan has an effective rate of 8.03 percent.
		The annual percentage rate for the Second Bank loans is 7.90 percent.
		Borrowers should prefer the loans offered by Second Bank.
		First Trust offers the best deal on loans.