You are comparing two investments. The rst pays 3 percent interest per month, compounded monthly, and the second pays 1' percent interest per six months, compounded every six months. a. What is the effective semiannual interest rate for each investment\"? b. What is the effective annual interest rate for each investment? c. Based on the interest rates, which investment is preferred? Does the decision depend on whether the comparison is based on an effective six-month rate or an effective oneyear rate? a. The effective semiannual interest rate for the first investment is D percent. (Type an integer or decimal rounded to two decimal places as needed} The effective semiannual interest rate for the second investment is D percent. (Type an integer or decimal rounded to two decimal places as needed} b. The effective annual interest rate for the rst investment is D percent. (Type an integer or decimal rounded to two decimal places as needed} The effective annual interest rate for the second investment is D percent. (Type an integer or decimal rounded to two decimal places as needed} c. When the comparison is based on the effective sixmonth rate, the investment is the preferred choice because it has a effective interest rate. When the comparison is based on the effective oneyear rate, the investment is the prefened choice because it has a effective interest rate. ctive six-month rate, the investment is the preferred cho ffective one-year rate, thi ent is the preferred ch second firstc. When the comparison is based on the effective six-month rate. the T investment is the preferred choice because it has 3 Effective interest rate. When the comparison is based on the effective oneyear rate, the investment is the preterred choice because it has: 3 interest rate. higher lower The effective annual interest rate for the second investment is percent. (Type an integer or decimal rounded to two decimal places as needed.) c. When the comparison is based on the effective six-month rate, the investment is the preferred choice because it has a effective interest rate. When the comparison is based on the effective one-year rate, the investment is the preferred choice because it has a effective interest rate. second firstc. When the comparison is based on the effective six-month rate, the investment is the preferred choice because it has a effective interest rate. When the comparison is based on the effective one-year rate, the investment is the preferred choice because it has a effective interest rate. higher lower