You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 12% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 6% every six months. Which is the lower rate?(Note: Be careful not to round any intermediate steps less than six decimal places.)

1) The effective annual rate for your credit card is _%

2) The effective annual rate for the loan from your parents is _%

3) The option with the lower effective annual rate is