. Nonannual compounding period Aa Aa he number of compounding periods in one year is called compounding frequency. The compounding frequency fects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 11.00%; 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 You want to invest $20,000 and are looking for safe investment options. your bank is offering you a certificate of deposit that pays a nominal rate will earn from this investment? of 10% that is compounded quarterly what is the effective rate of return that you 10.381% 10466% O 10 50296 10.558% suppose you decide to deposit $20,000 in a savings account that pays a nominal rate of 1 1%, but interest is daily Based on a 365 dav year. how much would you have in the account after three months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) O $20,557 86 O $21,791.33 O $20,146 70 O $21,380.17