Given the annual interest rate and the compounding period, find I, the interest rate per compounding period.
3.4% compounded quarterly.
Solution:-
The interest rate per compounding period is i =
where r is the annual nominal rate and m is the number of compounding periods per year.
The interest is compounded quarterly, so the compounding period is one quarter. There are 4 quarters in one year.
m = 4
Divide the annual rate by the number of periods per year.
i= 
= 0.85%
The interest rate per compounding period is 0.85%.