$.$ Mark Magma wishes to borrow $$10,000$ for one year. He is considering two alternatives:

A$.$ He could secure a one$-$year loan at Vesuvius National Bank. The stated interest rate on the loan is $3\%$ simple annual rate. The loan also has an origination fee of $$250,$ payable on the start date of the loan.

B$.$ He could borrow from Kilauea State Bank, where the interest rate is $3\mathrm{.}25\%$ simple annual rate. However, Kilauea does not charge any additional fees.

Which bank is the better alternative? Calculate and compare the effective annual rates at each bank.

Hint: The effective annual rate is the simple annual rate, after taking into account both interest plus any additional fees or charges. So$,$ for Kilauea, the effective annual rate is $3\mathrm{.}25\%,$ since the only cost of borrowing the $$10,000$ is the interest charged.