Antonio would like to replace his golf clubs with acustom-measured set. A local sporting goods megastore is advertising custom clubs for $780, including a new bag.In-store financing is available at 3.24 percent, or he can choose not to renew his $600 certificate of deposit(CD), which just matured. The advertised CD renewal rate 4.23 percent. Antonio knows thein-store financing costs would not affect histaxes, but he knowshe'll pay taxes(25 percent federal and 5.75 percentstate) on the CD interest earnings. Should he cash the CD or use thein-store financing?Why?

Theafter-tax CD earnings rate is ___%.(Round to two decimalplaces.)