An investment has a 3 rate which compounds quartely therefor

An investment has a 3% rate which compounds quartely, therefore it must have an APR that higher than/lower than/equal to an investment that has a 1% rate which compoinds monthly.

Solution

Correct answer is HIGHER THAN.

ie,An investment has a 3% rate which compounds quartely must have an APR that higher than the investment that has a 1% rate which compounds monthly.

Higher the interest rate & lower the compounding periods,higher will be the APR