You have $800 that you would like to invest. You have 2 choices: Savings account A which earns 8% per year, compounded annually, or savings account B which earns 7.80% per year, compounded quarterly, which would you choose and why? B because it has a higher effective annual rate - A because it has a higher effective annual rate I would be indifferent between A and B A because it has a higher quoted annual rate B because it has a higher quoted annual rate