Suppose the monthly rate is m% and the annual is a% = 12%
Then
(1 + m/100)12 = 1 + 12/100
so that 12*ln(1+m/100) = ln(1.12) = 0.1133
then ln(1 + m/100) = 0.1133/12 = 0.009444
therefore 1 + m/100 = exp(0.009444) = 1.00949
and then m/100 = 0.00949 so that m = 100*0.00949 = 0.949%
Note: you could have used log and powers of 10 instead of ln and and exp.
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0.67 percent
If you need a monthly income then obviously a monthly income is better. If the monthly interest is not withdrawn then it makes no difference because the annual interest rate is usually equal to the compounded monthly rate.
On monthly compounding, the monthly rate is one twelfth of the annual rate. Example if it is 6% annual, compounded monthly, that is 0.5% per month.
3
0.04849%