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The Piccadilly Savings and Loan offers a savings account with a quoted rate of 4% which is compounded 4 times per year. Not to be

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The Piccadilly Savings and Loan offers a savings account with a quoted rate of 4% which is compounded 4 times per year. Not to be outdone, the Thames Embankment Bank wants to offer a competing account with daily compounding. What quoted rate does Thames have to offer in order to produce the same effective interest rate as offered by Piccadilly? Assume a 365-day year. 4.12% 3.87% 3.98% 3.25%

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