(Calculating an EAR) Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1, pays 2.45 percent APR compounded daily, while the second certificate of deposit, CD #2, pays 2.50 percent APR compounded semiannually. What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother?
If the first certificate of deposit, CD #1, pays 2.45 percent APR compounded daily, the EAR for the deposit is ___%. (Round to two decimal places.)
Need assignment help for this question?
If you need assistance with writing your essay, we are ready to help you!
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality