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(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

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(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 4.95 percent APR compounded annually, while the second certificate of deposit, CD \#2, pays 5.00 percent APR compounded monthly. What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother

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