You can deposit your savings at the Texas Capital Bank, which offers to pay 13.6 percent annually, interest compounded quarterly, or at Midfirst Bank, which will pay interest of 13.4 percent annually, compounded daily. With this information, which banks offer should you choose?

Texas Capital Bank because its Effective Annual Rate (EAR) is higher.

Midfirst Bank because its EAR is higher.

Midfirst Bank because the nominal rate (Inom) is lower

Texas Capital Bank because the (Inom) is higher.

Cannot compare, because the effective rates cannot be computed.Next