(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 dete The first certificate of deposit, CD #1pays 5. 95 percent APR compounded quarterly, while the second certificate of deposit, CD #2 pays 6.00 percent APR compounded daily. What is the effective annual rate (the EAR) of each CD and which CD you recommend to your grandmother?

1. If the first certificate of deposit CD #1, pays 5.95 percent APR compounded quarterly, the EAR for the depost is ________%.(Round to two decimal places)

of ench CO, ind which CD do you rocemintend is your grandnother? 6. (Pound to two decimal places)