Assume One Bank Offers You a Nominal Annual Interest Rate

Multiple Choice

Assume one bank offers you a nominal annual interest rate of 6% compounded daily while another bank offers you continuous compounding at a 5.9% nominal annual rate.You decide to deposit $1,000 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?

A) $2.24
B) $2.35
C) $2.47
D) $2.59
E) $2.72