Question

Find i (the rate per period) and n (the number of periods) for the following loan at the given annual rate.Monthly payments of $265.85 are made for 9 years to repay a loan at 6% compounded monthly.i =(Type an integer or decimal rounded to four decimal places as needed.)

Answer 1

i = 0.06

n = 108

Explanation:

Rate per period:

This is the interest rate, as a decimal.

In this question, the interest rate is 6%. As a decimal, this is 0.06.

So i = 0.06

Number of periods:

The compounding happens monthly.

So 1 period is 1 month.

The payments are made for 9 years, and each year has 12 months.

9*12 = 108

So n = 108R