Which do you prefer: a bank account that pays 4.5% per year (EAR) for three years or a. An account that pays 2.9% every six months for three years? b. An account that pays 7.7% every 18 months for three years? c. An account that pays 0.34% per month for three years?

If you deposit $1 into a bank account that pays 4.5% per year for three years: