(Related to Checkpoint 5.7)(Calculating an EAR) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at percent compounded or from a bank at percent compounded . Which alternative is more attractive? If you can borrow funds from a finance company at percent compounded , the EAR for the loan is nothing%. (Round to two decimal places.)

(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 percent APR compounded , while the second certificate of deposit, CD #2, pays percent APR compounded . 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 percent APR compounded , the EAR for the deposit is nothing%. (Round to two decimal places.)