Question: Max and June both put $ 1 0 0 in certificates of deposit ( CDs ) . Both CDs mature in five years. Max's CD

Max and June both put $100 in certificates of deposit (CDs). Both CDs mature in five years. Max's CD has an APR of 3.85 percent, and interest is compounded monthly. June's CD has an EAR of 3.85 percent, and interest is compounded daily. Will Max or June have more money at the end of the five years? Why?
June will have more money, because she earns a lower EAR.
June will have more money, because she earns the higher EAR.
Max will have more money, because he earns a lower EAR.
Max will have more money, because he earns the higher EAR.
Max and June both put $100 in certificates of deposit (CDs).

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