QUESTION 4 Bank A offers to lend you $100.000 at a nominal rate of 7%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Bank B also offers to lend you the $100,000, but it will charge 7%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks? 0.4096 0.1396 0.2396 0.3096 0.3396