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For a savings account, you have two options. Option A: The account earns 12.4% interest, compounded daily. Option B: The account earns 12.6% interest, compounded
For a savings account, you have two options. Option A: The account earns 12.4% interest, compounded daily. Option B: The account earns 12.6% interest, compounded quarterly. Find the effective rate for option A, as a percentage rounded to three decimals
Find the effective rate for option B, as a percentage rounded to three decimals.
Which option is better?
Option A or Option B
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