A. ₱ XXXXXXXXXXbecomes ₱ XXXXXXXXXXafter 5 years when it is compounded semi-monthly. Determine (a) the nominal rate of interest (b) effective rate of interest. Ans: (a) 40.89% (b) 50% 2. What is the...

A. ₱1000.00 becomes ₱1500.00 after 5 years when it is compounded semi-monthly. Determine (a) the nominal rate of interest (b) effective rate of interest. Ans: (a) 40.89% (b) 50% 2. What is the actual rate of interest if bank offers you to borrow money at 10% compounded continuously? Ans: 10.52%