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 earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and elfective interest rates for this investment opportunity? You want to invest 525,000 and are looking for sale investment options, Your bank is offering you a certificate of deposit that pays a nominal rate of 45\% that is compounded bimonthly (every two months). What is the effeative rate of retum that you will earn from this investment? 3.945% 3.926% 4.1805 4.06776 Suppose you decide to deposit $25,000 in a savings account that pays a nominal rate of 4%, but interest is cocnpounded daily. Based on a 365 -day year, how much would you have in the account after six months? (Hint: To calculate the number of days, divide the number of months by 12 and imulitiply by 365.1 526,397,69 524,739.185 523,405.01 824,5924.51