Question: PVA inc, needs to arrange financing for its expansion program. Bank A offers to lend PVA the required funds on a loan where interest must

PVA inc, needs to arrange financing for its expansion program. Bank A offers to lend PVA the required funds on a loan where interest must be paid monthly, and the quoted rate is 8%. Bank B will charge 9%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks? a. .25% b. .50% . .70% d. 1.00% e. 1.25%

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