Question: blackboard. Draw cash flow diagrams for each problem. Problem 1: USF Bank offers loans at nominal interest rate of 16% compounded monthly. a) What is

blackboard. Draw cash flow diagrams for each problem. Problem 1: USF Bank offers loans at nominal interest rate of 16% compounded monthly. a) What is the effective annual interest rate? b) What is the interest rate per month? c) What is the effective interest rate per quarter? d) What is the effective interest rate for 2-month period? Problem 2: Gulf Bank offers loans at nominal interest rate of 14% compounded continuously a) What is the effective annual interest rate? b) What is the effective interest rate per quarter? c) What is the effective interest rate per month? d) What is the effective interest rate per day? e) What is the effective interest rate per week? Problem 3: A bank offers you a loan of $14,000. You need to pay $14,050 after one week. a) What is the effective interest rate per week? I b) What is the nominal annual interest rate? c) What is the effective annual interest rate? d) What is the effective interest rate per quarter

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