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Can someone please help me with this finance problem? Thank you. (Related to Checkpoint 5.7) (Calculating an EAR) Your grandmother asks for your help in
Can someone please help me with this finance problem? Thank you.
(Related to Checkpoint 5.7) (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 445 percent APR compounded weekly, while the second certificate of deposit, CD #2, pays 4.50 percent APR compounded quarterly. What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother? Ifthe first certificate of deposit, CD pays 4.45 percent APR compounded weekly, the EAR for the deposit is (Roundto two decimal places)
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