Your friend realizes you have been taking a finance course. He inherited $100,000 from his great aunt. He has used for $75,000 of the funds. However, he plans on placing $25,000 in a savings account. One bank quoted him a 2.00% rate compounded quarterly and another bank quoted him a 1.975% rate compounded daily.He asks you to compute the effective interest rate for these two choices and then tell him which one to choose?