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 8.80%; howover, interest will be compounded quarterfy. Complete the following table by computing the nominal (or stated), periodic, and effective interest rates for this investment opportunicy. Paolo needs a loan and is speaking to several lending agencies about their interest rates and loan terms. He particularly Bkes his local bank because he is being offered a nominal rate of 8.00%. However, since the bank is compounding its interest bimonthly (every two months), the loan will impose an effective interest rate of on his loan. Another bank is also offering fovorable terms, so Paolo decides to take a loan of $20,000 from this bank, He signs the loan contract at 10.40% compounded dally for three months. Based on a 365 -day year, what is the total amount that Paolo owes the bank at the end of the loan's term? (Hint: To caiculate the number of days, divlde the number of months by 12 and multiply by 365.) 520,526.87521,245,31$21,553.21521,758.48