You walk into a bank with $1,000 that you wish to invest in a CD (certificate of deposit).
The bank gives you two options: Option #1: $\quad 7 \%$ compounded quarterly
Option #2: $\quad 7.15 \%$ compounded annually Which option is better for you? Compare the two options by comparing their effective interest
rates.

Question

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The Answer of You walk into a bank with $1,000 that you wish to invest in a CD (certificate of deposit).
The bank gives you two options: Option #1: $\quad 7 \%$ compounded quarterly
Option #2: $\quad 7.15 \%$ compounded annually Which option is better for you? Compare the two options by comparing their effective interest
rates.

You Walk into a Bank with $1,000 That You Wish 7%\quad 7 \%7%

You Walk into a Bank with $1,000 That You Wish $\quad 7 \%$