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(Related to Checkpoint 5.7) (Calculating an EAR) Based on effective interest rates, would you prefer to deposit your money into Springfield National Bank, which pays
(Related to Checkpoint 5.7) (Calculating an EAR) Based on effective interest rates, would you prefer to deposit your money into Springfield National Bank, which pays 9.5 percent interest compounded semiannually, or into Burns National Bank, which pays 9.3 percent compounded weekly? (Hint: Calculate the EAR on each account.) If Springfield National Bank pays 9.5 percent interest compounded semiannually, the EAR for the deposit is %. (Round to two decimal places.) If Burns National Bank pays 9.3 percent interest compounded weekly, the EAR for the deposit is %. (Round to two decimal places.) Based on the findings above, which alternative is more attractive? (Select the best choice below.) A. The deposit into Springfield National Bank that pays 9.5% compounded semiannually B. The deposit into Burns National Bank that pays 9.3% compounded weekly
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