Larry is considering two bank loans.Bank A is offering a loan at 5.21% interest paid at the end of one year, annual compounding.Bank B is offering a 5.15% interest loan, compounded quarterly, paid at the end of one year.Which bank loan should Larry select?

Bank A as the nominal rateof 5.21%is better than the nominal rate0f 5.15 %for Bank B.

Bank B as theeffective rate of 5.15%is better than the effectiverate of 5.21% for Bank A

Bank B as the effective rate of 5.25% is better than the effective rate of 5.21% for Bank A

Bank A as the effective rate of 5.21% is better than the effective rate of 5.25% for Bank B