document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1191432>Question 1191432</A>: <I><SPAN STYLE=\"word-break: break-all;\"> One bank quotes interest at 4% p.a. compounded semi annually. Another bank offers interest of 5% compounded monthly. Which one of these banks would you prefer and why? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #823293 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52788)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=823293\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
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document.write( "To answer this question, calculations are not necessary.\r<BR>\n" );
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document.write( "The second bank has higher nominal annual percent rate and makes compounding more often.\r<BR>\n" );
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document.write( "These are two reasons/(two factors) what both work in the same direction, providing more high actual percentage rate\r<BR>\n" );
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document.write( "of the second bank comparing to the first bank.\r<BR>\n" );
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