Bank A pays est compounded annually on deposits, while Bank pays 2.7 compounded Based on the EAR (or EFFS) which bank should you use? L. You choose SA R IN her IL You would the her TIL. You would choose Bank Ab o minal interest rate is higher IV. You would choose Bank b u t nominal interest rate is higher V. You are indifferent between the banks and your decision will be based upon which one offers you for cooning an account t end of the year Assume that you s e e on osturing an entire b. Could your choice of the wenced by the fact that you want to with your funde compounding period in order to receive any interest 1. funds must be i n the end of the compounding period it year for lant A and 1 day for and you in there is a high probability that you will make during the year, then Bank to t h e end of the compounding period (1 year for Bank And day for and you have some with during the year, t h e IL IF funds must be referable EIL. If funds must be post the end of the compounding period (1 day for Bank And year for Bank , and you think there is a gh probability that you will make a during the year, then Bank during the year, then Bank IV. ends must be l ondott e end of the compounding period (1 year for Bank and 1 ay or Bank and you think there is a high probability that you will might be pret V. If funds must be left on deposit until the end of the compounding period (day for Bank A and 1 year for Bank), and you think there is a high probability that you will make A might be preferable during the year, the Bank