Roberto recently started a new business with money that he collected from his friends and family. All other factors being equal, which of the following financing options has a higher cost for someone who needs capital to start a business?

Veronica invested in Roberto$$s business and expects to earn a $10\%$ rate of return every year compounded quarterly for the next two years.

Sheila invested in Roberto$$s business and expects to earn a $10\%$ rate of return every year for the next two years.