Effective interest rate. State the rate per period and the number of periods in the follow ing:

a. 1 2 percent per year, for 5 years, compounded annually

b. 12 percent per year, for 5 years, compounded semiannually

c. 1 2 percent per year, for 5 years, compounded quarterly

d. 12 percent per year, for 5 years, compounded monthly Exercises 18 through 26 involve calculations of present and future value for single payments and for annuities. To make the exercises more realistic, we do not give specific guidance with each individual exercise.