An investment of $5,000 in a TFSA (Tax Free Savings Account) accumulated to $5,290 at the end of one year at a monthly compounding interest rate. However, the interest rate after year one changed and the balance in the account at the end of year two was $5,635.

a. Calculate the nominal interest rate for the first one year.

%

Round to two decimal places

b. Calculate the effective interest rate earned by this investment over the two years.

%

Round to two decimal places