Part 1. Nominal and Effective Interest Rates (present equations you used and provide sufficient calculations for each problem) 1. A credit card company charges a nominal 18% annual interest, compounded monthly. a. What is the effective annual interest rate? b. Re-calculate the effective interest rate if it is compounded daily. 2. Deposits of $300 are made quarterly into an account that pays 12% interest per year, compounded monthly. What is the effective quarterly interest rate, and how much money will be in the account at the end of 5 years? (Compounding periods more often than cash flows)

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