Question: You have the choice of investing a sum of money in four alternative schemes:
(a) one which will pay 10 per cent per annum interest compounded daily;
(b) one which will pay 10.25 per cent per annum interest compounded monthly;
(c) one which will pay 10.5 per cent per annum interest compounded quarterly;
(d) one which will pay 10.75 per cent per annum interest compounded annually.
Which would you choose and why?