Assume One Bank Offers You a Nominal Annual Interest Rate

Assume one bank offers you a nominal annual interest rate of 6.00% compounded daily while another bank offers you continuous compounding at a 5.90% nominal annual rate.You decide to deposit $1,250 with each bank.Exactly two years later you withdraw your funds from both banks.What is the difference in your withdrawal amounts between the two banks? Assume 365 days in a year.Do not round your intermediate calculations.

A) $2.66
B) $2.10
C) $2.80
D) $2.94
E) $2.38