QUESTION 13 Which of the following bank accounts has the highest effective annual return? a. An account that pays 8% nominal interest with monthly compounding, b. An account that pays 8% nominal interest with annual compounding c An account that pays 7% nominal interest with daily (365-day) compounding O d. An account that pays 7% nominal interest with monthly compounding Oe. An account that pays 8% nominal interest with daily (365-day) compounding QUESTION 14 You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest? a. Bank 1: 6.1% with annual compounding b. Bank 2; 6.0% with monthly compounding Bank 3, 6.0with annual compounding d. Bank 4: 60% with quarterly compounding de Bank 5; 6.0 with daily (365-day) compounding