You want to deposit $3,000 now into a savings account for 5 years. The First bank offers an APR of 10% with simple interest while the Second bank offers an APR of 8% with monthly compounding. Which bank would you prefer and why?

Group of answer choices

Cannot be determined.

The Second bank because it offers monthly compounding.

The First bank because the APR is higher.

The First bank because you will have a higher future value.