P5-28 (similar to) Question Help (Related to Checkpoint 5.4) (Present-value comparison) You are offered $90,000 today or $360,000 in 11 years. Assuming that you can earn 14 percent on your money, which should you choose? If you are offered $360,000 in 11 years and you can earn 14 percent on your money, what is the present value of $360,000? (Round to the nearest cent.) P5-37 (similar to) Question Help (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 2.45 percent APR compounded daily, while the second certificate of deposit, CD #2, pays 2.50 percent APR compounded quarterly. What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother? If the first certificate of deposit, CD #1, pays 2.45 percent APR compounded daily, the EAR for the deposit is %. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. Check Answer Clear All 2 parts remaining