You are comparing two loan offers from competing banks. Bank X offers an annual percentage rate of 12.25% with interest compounded monthly. Bank Y offers an annual percentage rate of 12.05% with interest compounded quarterly. What are the effective annual rates for loan offers X and Y?

A) 12.96%; 12.61%

B) 11.61%; 11.54%

C) 12.25%; 12.05%

D) 12.61%; 1/2.96%