You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest?
Bank 4; 6.0% with quarterly compounding.
Bank 5; 6.0% with daily (365-day) compounding.
Bank 2; 6.0% with monthly compounding.
Bank 1; 6.1% with annual compounding.
Bank 3; 6.0% with annual compounding.