You want to deposit your money and you get two offers from two different banks. Bank A offers you a 5% interest compounded quarterly, whereas bank B offers you a 6% interest compounded semiannually. Everything else held constant, in which bank would you prefer to deposit your funds?

Rana wants to buy a land that costs $ 30,000. She borrowed the total amount needed to buy the land from her local bank at an interest rate equal to 14%. The loan requires semiannual payments for a period of five years. The first payment will be due in six months. What is the amount of the semi-annual payment on the loan?