Problem #1: (35 pts) The effective ANNUAL rate can be found using the EFFECT function in Excel "=EFFECT(nominal_rate, npery)" where npery is the number of compounding periods per year. Please create the Excel table in Figure 5.2 at page 67. (each column from C to His 7 points) H Formulas B 1 Amount deposited PV ($10,000) (510,000) (S10,000) (510,000) (S10,000) 2 Compounding frequency Yearly Quarterly Monthly Weekly Daily 3 # of compoundings per year NPERY 1 12 52 365 4 Annual percentie rate (nominal per year APR 6.0000% 6.0000% 6.0000% 6.0000% 6.0000% 5 Nominal rato per period (compounding frequency) Nom/pariod 6.0000% 1.5000% 0.5000% 0.1154% 0.0164% -B4/B3 6 EFFECT 6.0000% 6.1364% 6.1678% 6. 1800% 6.1831% =EFFECT B4,B3) 7 Effective rate per year 9 Ending balance (using the effective rate) 8 FV $10,600.00 $10,613.64 $10,616.78 510,618.00 $10,618.31 =FV(C7,1,0,C1,0) 10 11 of times compounding happens in a year NPER 1 4 12 52 366 12 13 Ending balance (using the nominal rate per period) FV $10,600.00 $10,613.64 $10.616.78 510,618.00 $10,618.31 =FV|C5,C11,0.01) Figure 5.2. Finding Future Value for Various Compounding Frequencies