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

Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly.The loan (principal plus interest) must be repaid at the end of the year.Woodburn Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year.How much higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern?

A) 0.52%
B) 0.44%
C) 0.36%
D) 0.30%
E) 0.24%