I can invest in a Certificate of Deposit at Bank of Veronica that will pay me 5.0%, compoundedannually. Watch-Over-Ya Trust offers adaily compoundedcertificate that pays 4.95%. Which investment should I choose?AND WHY?

I should invest inBank of Veronica, since 5.0% is more than 4.95%.

I should invest inWatch-Over-Ya, because the Effective Annual Return for Watch-Over-Ya is greater.

I should invest inBank of Veronica, because the Effective Annual Return for Bank of Veronica is greater.

I should invest inBank of Veronica, because after a year, I will have more in my Bank of Veronica account than if I invest inWatch-Over-Ya.

It makes no difference, since after a year, I will have exactly the same whichever account I choose.