Van Dyke has just purchased a brand-new motor vehicle to the value of R1 500 000 after winning the English Premier League (EPL) for Liverpool. Van Dyke obtained 100% financing for the vehicle over five years at an interest rate of 8% p.a., compounded monthly, with monthly instalments made at the end of every month. REQUIRED: (b) When converting a nominal rate to an effective rate, why would the effective rate be greater than the nominal rate? (2)