1. The following table shows examples of interest statements. Interpret those statements by filing the table. Solution: Interest Rate Statement Nominal or Effective Interest Compounding Period 15% per year compounded monthly 15% per year Effective 15% per year compounded monthly 20% per year compounded quarterly Nominal 2% per month compounded weekly 2% per month 2% per month compounded monthly Effective 6% per quarter Effective 2% per month compounded daily 1% per week compounded continuously 2. From the interest statement 18% per year, compounded monthly, determine the values for interest period, compounding period, and compounding frequency Solution