Related to Checkpoint 5.6) (Solving for 1) Lance Murdock purchased a wooden statue of a Conquistador for $7,900 to put n his home office 8 years ago. Lance has recently married, and his home office is being converted into a sewing room. His new wife, who has far better taste than Lance, thinks the Conquistador is hideous and must go immediately. Lance decided to ell it on e-Bay and only received $5,000 for it, and so he took a loss on the investment. What was his rate of return, that is, me value of What was Lance Murdock's rate of return, that is, the value of Enter a negative percentage for a loss, % (Round to two decimal places.) (Related to Checkpoint 5.4) (Present-value comparison) You are offered $80,000 today or $300,000 in 12 years. Assuming that you can earn 12 percent on your money, which should you choose? If you are offered $300,000 in 12 years and you can earn 12 percent on your money, what is the present value of $300,000? (Round to the nearest cent.) (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 2.95 percent APR compounded semiannually, while the second certificate of deposit, CD #2, pays 3.00 percent APR compounded daily 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 2.95 percent APR compounded semiannually, the EAR for the deposit is %. (Round to two decimal places.)