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please show work for how to solve for the nominal EAR ok Homework: Chapter 5 Save Score: 0.67 of 2 pts 15 of 15 (15

please show work for how to solve for the nominal EAR image text in transcribed
ok Homework: Chapter 5 Save Score: 0.67 of 2 pts 15 of 15 (15 complete) HW Score: 87 65%, 23 67 of 27 pts SP 5-35 (similar to) Question Help Assume the inflation rate is 3.08% APR, compounded annually. Would you rather earn a nominal return of 4 59% APR, compounded semiannually, or a real return of 2.85% APR, compounded quarterly? (Note: Be careful not to round any intermediate steps less than six decimal places) To put these on the same basis, you must convert them both to nominal EARS The EAR for 4 59% APR, compounded semiannually is 0046427 (Type your answer in decimal format. Round to six decimal places.) The nominal EAR for a real 2 85% APR, compounded quarterly is 0.060178 (Type your answer in decimal format Round to six decimal places.) page

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