Choosing a certificate of deposit?

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Reference no: EM132234997

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.)

Reference no: EM132234997

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