The First Bank offers personal loans at 7.5 percent compounded quarterly.

The Second Bank offers similar loans at 7.25 percent compounded monthly.

Based on the information above, which is correct concerning these two banks?

a. The First Bank loan has an effective rate of 7.67 percent.

b. The First Bank loan has an effective rate of 7.78 percent.

c. The Second Bank loan has an effective rate of 7.50 percent.

d. The Second Bank loan has an effective rate of 7.67 percent.

e. The Second Bank loan has a higher effective rate than the First Bank loan.