Merchants Bank offers to lend you

$30,000

at a nominal rate of

6.0%

, simple interest, with interest paid semiannually. Gold Coast Bank offers to lend you the

$30,000

, but it will charge

7.0%

, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks?\ Select one:\ a.

1.49%

\ b.

1.24%

\ c.

1.04%

\ d.

0.86%

\ e.

0.91%

Merchants Bank offers to lend you $30,000 at a nominal rate of 6.0%, simple interest, with interest paid semiannually. Gold Coast Bank offers to lend you the $30,000, but it will charge 7.0%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks? Select one: a. 1.49% b. 1.24% c. 1.04% d. 0.86% e. 0.91%