Farmers Bank Offers to Lend You $50,000 at a Nominal

Multiple Choice

Farmers Bank offers to lend you $50,000 at a nominal rate of 5.0%,simple interest,with interest paid quarterly.Merchants Bank offers to lend you the $50,000,but it will charge 5.7%,simple interest,with interest paid at the end of the year.What's the difference in the effective annual rates charged by the two banks?

A) 0.74%
B) 0.54%
C) 0.59%
D) 0.61%
E) 0.58%