A B C D 1 Your 10-year certificate of deposit (CD) account has APR 5%. The bank tells you that 2 they use monthly compounding. 3 4 a) what is the effective annual rate (EAR)? 5 b) How much money should you deposit now in order to have $50,000 on your 6 account in 10 years? 8 c) How much extra value would you get, if you deposited the same amount as 9 in b), but the bank used weekly compounding for the same APR? Assume 52 10 weeks per year. 21 22 b) How much money should you deposit now in order to have $50,000 on your account in 10 years? 23 24 25 26 deposit now 27 28 29 30 c) How much extra value would you get, if you deposited the same amount as in b), but the bank used weekly compounding for the same APR? Assume 52 weeks per year