Choose the number sentence that illustrates the distributive property of multiplication over addition. A) 8×(6+4)=(8+6)×(8+4)
B) 8×(6+4)=(8×6)+(8×4)
C) 8×(6+4)=(8×6)+4

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2% compounded quarterly is .5% each quarter  (2% ÷ 4) 
So the principal (200) is multiplied by  1.005 ⁸  (8 because there are 8 quarters in 2 years)

200 x 1.005 ⁸ = $208.14 in 2 years (rounded to the nearest penny)

4% over 12 months is 1/3% every month  or .003333
200 x 1.00333²⁴  (24th power since there are 24 months in 2 years) $216.61 in 2 years rounded to the nearest penny.
The monthly scenario is better.