1. The Central Bank pays 3.8% compounded quarterly on certain types of deposits. What is the effective annual rate of interest?

Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as % in your final answer.

2. The Central Bank pays 3.8% compounded quarterly on certain types of deposits. If interest is compounded daily instead of quarterly, what nominal rate of interest compounded daily will maintain the same effective rate of interest you have found in the previous question?

Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as % and comma in your final answer.