An interest rate is quoted as 5% per anmum with semianmual compounding. What is the equivalent rate with (a) anmual compounding, (b) monthly compounding, and (c) contimuous compounding. a) With annual compounding the rate is 1.025 ^2 −1=0.050625 or 5.0625% b) With monthly compounding the rate is 12×(1.025 ^1/6 −1)=0.04949 or 4.949%. c) With continuous compounding the rate is 2×ln1.025=0.04939 or 4.939%.