Question

astructor-created 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 $277.25 are made for 7 years to repay a loan at 10.4% compounded monthly i= (Type an integer or decimal rounded to four decimal places as needed.)

Answer 1

annual interest rate is r=10.4%

here payment frequency is monthly

so we have to divide by 12

$i=\frac{10.4\%}{12}$

$i=0.86666\%$

$i=\frac{0.86666}{100}$

$i=0.008666$

0.0087

.

.

the loan term is 7 years

to convert into months we have to multiply by 12

$n=7\cdot12$

${\color{Red} n= 84}$