The Monthly Bank Pays 3 Per Cent Interest,compounded Monthly,on Their

Multiple Choice

The Monthly Bank pays 3 per cent interest,compounded monthly,on their savings accounts.The Daily Bank pays 3 per cent interest,compounded daily,on their savings accounts.You want to have $1000 saved in an account two years from today.The amount you must deposit today in a lump sum to achieve your goal will be:

A) the same regardless of which bank you choose because they both pay 3 per cent
B) the same regardless of which bank you choose because they both pay simple interest
C) the same regardless of which bank you choose because they both pay compound interest
D) greater if you have your account at The Monthly Bank
E) greater if you have your account at The Daily Bank