Question: A checking account at The Monthly Bank pays a nominal 8% compounded monthly and a checking account at The Annual Bank pays a nominal 8.25%

A checking account at The Monthly Bank pays a nominal 8% compounded monthly and a checking account at The Annual Bank pays a nominal 8.25% compounded annually. Which bank pays a higher annual percentage yield (APY)?

Group of answer choices

-The Monthly Bank

-The Annual Bank

-Both pay the same amount

-This cannot be determined with the information given

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