1. A deposit is made on January 1, 2004. The investment earns interest at a rate equivalent to a rate of discount of 6% convertible quarterly. Calculate the monthly effective interest rate for the month of December 2004.
2. Fund A earns interest at a nominal rate of 6% compounded monthly. Fund B earns interest at a nominal rate of discount compounded three times per year. The annual effective rates of interest earned by both funds are equivalent. Calculate the nominal rate of discount earned by Fund B.