Homework 1 1. A loan of 1000 EUR is to be paid back after 1,5 years with monthly interest rate of 1%. What is the annual nominal interest rate, convertible montly? a) Calculate the future value initial capital with interest) at time t = 1,5; b) Calculate the equivalent effective annual interest rate; c) Calculate the equivalent effective interest rate if basic time unit is 1.5 years; d) Calculate the equivalent daily convertible annual nominal interest rate (we assume 365 days per year). What is the daily convertible interest rate