Suppose you can borrow money at $9\mathrm{.}76\%$ per year $($APR$)$ compounded semiannually or $10\mathrm{.}98\%$ per year $($APR$)$ compounded monthly.

a$.$ Calculate the Effective Annual Rate. $($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

Effective Annual Rate

$9\mathrm{.}76\%$

$\%$

$10\mathrm{.}98\%$

$\%$

b$.$

Which is the better deal?

multiple choice

APR compounded monthly.

APR compounded semiannually.