20. Columbia Trust wants itsannually, semiannually, and monthly compounded five-year GICs all to have an effective rate of interest of 5.75%.What nominal annual rates should it quote for the three compounding options?

21. What monthly compounded interest rate is equivalent to:

a.6% compounded annually?

b.6% compounded semiannually? (5.93)

c.6% compounded quarterly?

22. You are offered a loan at a rate of 9% compounded monthly.Below what nominal rate of interest would you choose semiannual compounding instead? (9.17)