) 12% The number of compounding periods in one year is caled compounding frequency. The compounding affects both the present and future values of cash flows. invest money with a particular bank and earn a stated interest rate of 15.40%; however, interest will be compounded quarterly. What are the nominal and effective interest rates for this investment opportunity? Interest Rates Rahul needs a loan and is speaking to several lending agencles terms they offer. He particularly likes his local bank because he is being offered a s compounding semiannually. What is the effective interest rate that Rahul would pay for the loan? about the interest rates they the nominal rate of 14%. But the bank 14.667% 14.673% 14,575% 14.490% Another bank is also offering favorable terms, so Rahul decides to take a the loan contract at 4% compounded Rahul owes the bank at the end of the months by 12 and multiply by 365.) loan of $24,000 from this bank. He signs daily for four months. Based on a 365-day year, what is the total amount that loan's term? (Hint. To calculate the number of days, divide the number of O $25,781.54 $23,835.77 O $25,538.32 $24,322.2