Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? Effective annual rate (EFF%) EFF% = (1 + INOM/M) - 1 Inom: nominal or quoted annual rate M. compounding frequency within a year The periodic rate of interest is 2% and the effective rate of interest is 4%. The periodic rate of interest is 8% and the effective rate of interest is also 8%. The periodic rate of interest is 4% and the effective rate of interest is less than 8%. The periodic rate of interest is 2% and the effective rate of interest is greater than 8%. The periodic rate of interest is 8% and the effective rate of interest is greater than 8%