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The first certificate of deposit, CD #1, pays 4.

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 4.45 percent APR compounded quarterly​, while the second certificate of​ deposit, CD​ #2, pays 4.50 percent APR compounded daily. 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 4.45 percent APR compounded quarterly​, the EAR for the deposit is ____​%. ​(Round to two decimal​ places.)

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