A bank offers a lending rate of 10% p.a. compounded quarterly. What figure would they quote if they wished to express this rate: a. On a p.a. basis compounded monthly? b. On a p.a. basis compounded continuously? As an effective half year rate? d. As an EAR? C. Question #3 Some time ago you borrowed $1000 at an EAR of 8%. It is now time to pay back the loan with interest. The total payment amounts to $2500. How long ago did you make the original loan