A. From the annual effective rate of 33%, find: (Develop in Excel)

a. The effective semi-annual rate

b. The monthly effective rate

c. The quarterly effective rate

d. The bimonthly effective rate

B. A capital of $5,000,000 is invested at an interest rate of 28% compounded monthly for 2 years. If inflation remains constant at 1.23% per month, calculate: (Develop in Excel)

a. Future value in nominal or current terms

b. Future value in real or constant terms