Question: Answer all three and describe answer, clear procedure, for positive rating. The answer is in red. 3. What nominal interest rate per year is equivalent

Answer all three and describe answer, clear procedure, for positive rating. The answer is in red.

3. What nominal interest rate per year is equivalent to an effective 12% per year compounded quarterly? (11.49%) 4. What effective interest rate per quarter is equal to a nominal 2% per month compounded continuously? (6.18%) 5. A present sum of $50,000 at an interest rate of 12% per year compounded quarterly is equivalent to how much money 8 years ago? ($19,416)

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