You Go to Three Different Banks to Borrow $10,000 for One

Multiple Choice

You go to three different banks to borrow $10,000 for one year.Each says it will lend you the money at 10 percent,but their terms differ as follows: Banks A and C require a single payment at the end of the year.Bank B requires 12 equal monthly payments beginning at the end of the first month.What is the difference between the highest and lowest effective annual rate in this case?

A) 13.0%
B) 9.5%
C) 9.0%
D) 8.5%
E) 8.0%