Bank A offers an account with a nominal yield of 2 percent, and it compounds interest monthly. Bank B offers an account with nominal yield of 2 percent, and it compounds interest daily. Which one has the higher APY?
A) Bank A has the higher APY.
B) Bank B has the higher APY.
C) They both have the same APY.
D) This cannot be solved from the given information.
Correct Answer:
Verified
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