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You have money to invest in interest earning deposits. Deposits at your bank pay 3.5% compounded semiannually. Deposits at a local trust company pay 3.625%

You have money to invest in interest earning deposits. Deposits at your bank pay 3.5% compounded semiannually. Deposits at a local trust company pay 3.625% compounded annually and deposits at a credit union pay 3.45% compounded monthly. What institution offers the best rate of interest for your deposit? [Hint: Interest rates given are not directly comparable. So, you may want to think about effective interest rates]

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