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 3.95 percent APR compounded quarterly , while the second certificate of deposit, CD #2, pays 4.00 percent APR compounded annually . 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 3.95 percent APR compounded quarterly , the EAR for the deposit is nothing%. (Round to two decimal places.)