SOLUTION: What nominal rate of​ interest, compounded​ monthly, corresponds to an effective rate of 3.5​%?
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You can put this solution on YOUR website! To correspond to an effective rate of 3.5% yearly, the following equation must be made solved for r:
(1+r/12)^12=1.035
Then:
ln (1+r/12)^12=ln 1.035
12 ln(1+r/12)=0.03440142671733239614402827482834
ln(1+r/12)=0.00286678555977769967866902290236
1+r/12=e^0.00286678555977769967866902290236=1.0028708987190766276170092557721
r=0.03445078 or 3.445078% interest rate. ☺☺☺☺
