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Which one of the following bank accounts will you choose for a savings account? Bank A: An account that pays 8% nominal interest (APR) with

Which one of the following bank accounts will you choose for a savings account?

Bank A: An account that pays 8% nominal interest (APR) with daily (365-day) compounding.

Bank B: An account that pays 8% nominal interest (APR) with annual compounding.

Bank C: An account that pays 7% nominal interest (APR) with daily (365-day) compounding.

Bank D: An account that pays 7% nominal interest (APR) with monthly compounding.

Please explain your choice.

What is the effective annual return (EFF) of the account that you picked?

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