An investor can invest money with a particular bank and earn a stated interest rate of $6\mathrm{.}60\%$; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity?

Interest Rates

Nominal rate

Periodic rate

Effective annual rate

Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is being offered a nominal rate of $6\%.$ But the bank is compounding monthly. What is the effective interest rate that Rahul would pay for the loan?

$6\mathrm{.}027\%$

$6\mathrm{.}345\%$

$6\mathrm{.}482\%$

$6\mathrm{.}168\%$