The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An Investor can invest money with a particular bank and eam a stated interest rate of 8.80%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity? 8.80 Interest Rates Nominal rate Periodic rate Effective annual rate 2.209 4.5 9.09% Rahul needs a loan and is several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank beca 4.55offered a nominal rate of 8%. But the bank is compounding blmonthly (every two months). What is the effective interest rate that id pay for the loan? 16.25 O 8.149 9.00% O 8.392 8.1779 8.271 Another bank is also offering favorable terms, so Rahul decides to take a loan of $14,000 from this bank. Hesigns the loan contractat compounded daily for four months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term? (Hint: To calculate the number of days, diade the number of months by 12 and multiply by 365.) $14,137.90 Another bank is also offering favorable terms, so Rahul decides to take a loan of $14,000 from this bank. He signs the loan contract at 9% compounded daily for four months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term? (Hint To calculate the number of days, divide the number of months by 12 and multiply by 365.) O $14,137.90 O $14.252.17 $14,931.36 $14.426.43