1)What are the formulas for nominal interest and effective annual interest? how are they related to each other ? what are their definitions?

2) Assume the interest rate is 5% per year and that you can borrow and lend any amount at that rate, with interest paid or received annually.

a. What is the present discounted value of 100,000 due 10 years from now?

b. What is the present discounted value of a flow of receipts of 10,000 each year for 10 years, received in annual instalments and beginning 1 year from now?

formulas used, good explanations , thank you.