bank a offers 5 interest compounded daily Bank b offers 518

bank a offers 5% interest compounded daily. Bank b offers 5(1/8)% annually. Where will you make more money?

bank a offers 5% interest compounded daily. Bank b offers 5(1/8)% annually. Where will you make more money?

Ans::(interest compounded daily - added at the end of each day)

Suppose For the amount $ 100 the bank A offers 5% interest daily the total amount will be $105.13

if the B bank offers 5(1/8)% = 5.125% annually the total amount will be the same that is $105.13.

So there is no difference.