For the following investment, find the total number of compounding periods (n) and the interest rate...

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For the following investment, find the total number of compounding periods (n) and the interest rate per period (i) that you

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Answer 1

Answer #1

Rate per period = Annual rate/Number of periods per year

Annual rate = 1.5%

Number of periods per year = 12

Rate period per year = 1.5%/12 = 0.00125

Compounding periods = Number of years * Number of periods per year

Compounding periods = 12 * 12 = 144 months

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Answer 2

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