You have invested your annual bonus in a one year fixed deposit at Alpha Bank which offers a nominal interest rate of 12% per annum compounded bi-annually. However, at a braai over the weekend, your friend has pointed out that you should have rather invested at the same bank he is a client of, namely Beta Bank, because even though the nominal interest rate is half a percent less than Alpha Bank, the interest is compounded quarterly, and you will therefore get a greater return. REQUIRED: Discuss whether your friends advice was correct. Provide calculations to support your answer.