12. Nonannual compounding period The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. are the nominal, periodic, and effective interest rates for this investment opportunity? You want to invest $11,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate 14% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment? 15.026% 14.702% 14.928% 14.843% Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but interest is compounded day 365 -day year, how much would you have in the account after 12 months? (Hint: To calculate the number of days, divide the number of months 12 and multiply by 365.) $11,913.75 $12,147.36$11,680.15 $11,329.75 12. Nonannual compounding period The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. are the nominal, periodic, and effective interest rates for this investment opportunity? You want to invest $11,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate 14% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment? 15.026% 14.702% 14.928% 14.843% Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but interest is compounded day 365 -day year, how much would you have in the account after 12 months? (Hint: To calculate the number of days, divide the number of months 12 and multiply by 365.) $11,913.75 $12,147.36$11,680.15 $11,329.75