Bank A offers an account with a nominal rate of $2$ percent, compounded monthly. Bank B offers an account with a nominal rate of $2$ percent, compounded daily. Which one has the higher APY?

Bank A offers an account with a nominal rate of $2$ percent, compounded monthly. Bank B offers an account with a nominal rate of $2$ percent, compounded daily. Which one has the higher APY?

Bank A has the higher APY

Bank B has the higher APY

They both have the same APY, $2\%$

This cannot be solved from the given information.