Question

find the total number of compounding periods and the interest rate per period for the investment.
term of investment: 4 years
nominal (annual) rate (%): 3
interest compounded: monthly
compounding periods:
rate per period (%): %

Explanation:

Step1: Calculate total compounding periods

Total periods = Years × Monthly compounding frequency
$4 \times 12 = 48$

Step2: Calculate rate per period

Period rate = $\frac{\text{Annual rate}}{\text{Compounding frequency}}$
$\frac{3\%}{12} = 0.25\%$

Answer:

Compounding Periods: 48
Rate per Period (%): 0.25