The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash fows. An investor an imest moncy with a particular bank and eam a stated interest rate of 13.20%; however, interest will be compounded quarterly, Complete the following table by computing the nominal (or stated), periadic and effective interest rates for this investment opportunity. Marnel needs a loan and is speaking to several lending agences about their interest rates and loan terms. He particularly likes his local bank because he is being offered a nominal rote of 12.00%. However, since the bank is compound ing its interest daily, the loan will impose an effective interest rate of on his loan. Suppose you deode to deposit \$18,000 into a savings account that pays a nominal rate of 15.60%, but interest is compounded daily. Based on a 365 - Suppose you decide to deposit $18,000 into a savings account that pays a nominal rate of 15.60%, but interest is compounded daily, Based on a 365 day year, how much would you have in your account after three months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) 518,153,58 $18,527,68 518,715.03 $19,089.33