Consider two savings accounts. Bank A pays 7.5 percent compounded annually, and Bank B pays 7.4 percent compounded semiannually. Based on effective annual interest rates, which bank is offering a better deal?

1) Bank A (7.5 percent compounded annually) 2) Bank B (7.4 percent compounded semiannually) 3) There is insufficient information to compute the effective interest rates. 4) I dont like this question. I do not want to receive a point for this question.