1. Find Nominal interest rate, for Effective interest rate i = 10%, Compounded (n) = Monthly (12/year)

Solution:
`i=10%=0.1` per year (Effective interest rate)

`n=12` (Number of periods)

Nominal interest rate `i_(nom)=n xx((1+i)^(1/n)-1)`

`=12xx((1+0.1)^(1/12)-1)`

`=12xx((1.1)^(1/12)-1)`

`=12xx(1.008-1)`

`=12xx(0.008)`

`=0.0957`

`I_(nom)=i_(nom) xx 100=0.0957xx100=9.57 %`