You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest? Calculate the effective rate for a. and b.

a. Bank 1; 6.3% with annual compounding.

b. Bank 2; 6.2% with monthly compounding.

c. Bank 3; 6.2% with annual compounding.

d. Bank 4; 6.2% with quarterly compounding.

e. Bank 5; 6.2% with daily (365-day) compounding.

a	B	c	d	e