Trans-Star, a spin-off company of MOPAR, supplies major automobile transmission components to auto manufacturers worldwide and is Mopar's largest supplier. A Trans-Star Engineer has been tasked with evaluating bids for

new-generation CNC machinery to be directly linked to the automated manufacturing of high-precision transmission band components.The following are three interest rates that are included in the Vendor bids.Trans-Star will make payments on a semiannual basis only. The engineer is confused about the effective interest rates-what they are annually and over the payment period of 6-months. Answer the following questions: Bid #1: 2.25% per quarter, compounded quarterly Bid #2: 7.60% per year, compounded quarterly Bid #3: 8.25% per year, compounded monthly Calculate the effective semiannual interest rate for ALL three bids. Calculate the effective annual interest rate for ALL three bids.