Question: Gomez Electronics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan with an APR

Gomez Electronics needs to arrange financing for its expansion program. Bank

Gomez Electronics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan with an APR of 8%, in which interest must be paid monthly. Bank B will charge an APR of 8.8%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks? Select one: a. 0.25% b. 0.70% c. 0.50% d. 1.00% e. 1.25%

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