Bank with one-year maturity and fixed interest rate

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Reference no: EM131346983

(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, pays3.45 percent APR compounded weeklyweekly?, while the second certificate of? deposit, CD? #2, pays 3.50 percent APR compounded quarterlyquarterly. What is the effective annual rate? (the EAR) of each? CD, and which CD do you recommend to your? grandmother?

Reference no: EM131346983

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Bank with one-year maturity and fixed interest rate : 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, pays3.45 percent APR compounded weeklyweekly?, while the second..

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