A small company is looking to take out a loan to start a new division. There are four

local banks willing to give the company a loan. The details on the loan rates are provided below. The

company would like to select the lowest effective interest rate. Provide a rank order from best to worse

for which bank the company should select for the loan? Remember to compare interest rates you need

effective rates for the same target period $($TP$).$

Bank $1$: $4\%$ per semi$-$annual compounded monthly.

Bank $2$: $11\%$

Bank $3$: $10\%$ per year compounded monthly.

Bank $4$: $10\%$ compounded quarterly.