Gomez Electronics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan with an APR of 12%, in which interest must be paid monthly. Bank B will charge an APR of 13%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks?

Select one: a. 0.32% b. 1.00% c. 0.20% d. 0.70% e. 0.50%