You have $500 that you would like to invest. You have 2 choices: savings account A that has an APR of 7.65% with monthly compounding or savings account B that has an APR of 8% with annual compounding. which should you choose and why?

1. A because it has a higher effective annual rate

2. A because it has a higher APR

3. B because it has a higher effective annual rate

4. B because it has a higher APR

5. More than 1 of the answers above are correct