Question 3 . $5,000 is invested at an interest rate of 0.5% per month. For five months, what is the nominal interest rate? . For five months, what is the effective interest rate? For one year, what is the nominal interest rate? For one year, what is the effective interest rate? Question 4 You invest $1,000 at 4% nominal interest rate compounded quarterly: What is your money worth at the end of 6 months? What is your money worth at the end of 5 years? Question 5 Your bank charges you interest on your home mortgage loan of 0.8% per month: What is the nominal interest rate? What is the effective interest rate? What is the Annual Percentage Rate (APR)