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To solve this problem, we need to calculate the **total number of compounding periods** and the **interest rate per period** for the investment.

### Given Data:
- **Term of Investment**: 3 years
- **Nominal (Annual) Rate**: 3%
- **Interest Compounded**: Monthly

### Step 1: Calculate the Total Number of Compounding Periods

Since the interest is compounded **monthly**, there are 12 compounding periods in one year. So, for a 3-year investment, the total number of compounding periods is:
\[
\text{Compounding Periods} = 3 \times 12 = 36 \text{ periods}
\]

### Step 2: Calculate the Interest Rate per Period

The nominal annual interest rate is given as 3%, and since the interest is compounded monthly, we need to divide the annual rate by the number of months (12) to get the interest rate per period:
\[
\text{Rate per Period} = \frac{3}{12} = 0.25\%
\]

### Final Answers:
- **Total Compounding Periods**: 36
- **Rate per Period**: 0.25%

Would you like more details or have any questions about this solution? 

Here are some related questions for further exploration:
1. How does the frequency of compounding affect the total interest earned?
2. What would be the total amount accumulated after 3 years with this interest rate?
3. How would the compounding periods change if the interest were compounded quarterly instead of monthly?
4. How can you calculate the future value of the investment using the compounding formula?
5. What is the difference between nominal interest rate and effective interest rate?

**Tip**: When dealing with interest rates, remember that compounding frequency can significantly impact the overall return of an investment.

Find the total number of compounding periods and the interest rate per period for the investment with a term of 3 years, nominal annual rate of 3%, and monthly compounding.

Learn how to calculate the total number of compounding periods and the interest rate per period for a 3-year investment with a 3% nominal annual interest rate compounded monthly. Includes detailed step-by-step explanations and formulas. Suitable for high school students in Grades 10-12.

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