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12. a) (Calculating an? EAR) Your grandmother asks for your help in choosing a certificate of deposit? (CD) from a bank with a? one-year maturity

12. a) (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 3.95 percent APR compounded monthly?, while the second certificate of? deposit, CD? #2, pays 4.00 percent APR compounded weekly. What is the effective annual rate? (the EAR) of each? CD, and which CD do you recommend to your? grandmother? (Round to two decimal? places.)

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