The R&M Bank Has Offered You the Choice Between Two $\bullet$

The R&M Bank has offered you the choice between two investment accounts:
$\bullet$ #1 pays interest at a rate of 12% compounded semi-annually.
$\bullet$ #2 pays interest at a rate of 11% compounded monthly.
Which investment account do you prefer and why?

A) #1, 12% is greater than 11%
B) #2, greater compounding frequency
C) #1, higher effective rate
D) #2, higher effective rate