Which of the following statements is correct, assuming positiveinterest rates and holding other things constant?
A) Banks A and B offer the same nominal annual rate of interest,but A pays interest daily and B pays semiannually. A deposit inBank B will have a higher value in five years.
B) Banks A and B offer the same nominal annual rate of interest,but A pays interest quarterly and B pays monthly. A deposit in BankB will have a higher value in five years.
C) Banks A and B offer the same annual rate of interest, but Apays interest quarterly and B pays semiannually. A deposit in BankA will have a higher value in five years.
D) Banks A and B offer the same nominal annual rate of interest,but A pays interest weekly and B pays quarterly. A deposit in BankB will have a higher value in five years
