Part 1. A bank account pays an interest rate of 7% per year compounded quarterly. a) Calculate the nominal interest rate per year. b) Determine the effective annual interest rate. b₁) Explain how you got the value of m that you used.

Part 2. Cash flow diagrams required. If you deposit $15,000 today into this account, determine the equivalent future sum (F) after 8 years:

c) Base your calculation on years.

d) Base your calculation on interest periods.