Question 1046478
To find the effective rate, solve the equation 

{{{(1+0.03/12)^12 = 1+r}}}

<===> {{{1.0025^12 = 1+r}}}

===> {{{r = 1.030415957 - 1 = 0.030415957}}}


===> the effective rate of interest is 3.04%, to two decimal places.