Suppose ABC Bank offers to lend you $1,000 at a nominal rate of 6%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Bank XYZ also offers to lend you the $1,000, but it will charge 7%, with Anterest due at the end of the year. What is the difference in the effective annual rates charged by the two banks? 1.17% 1.59% 0.83% 1.00%