Question

Find i (the rate per period) and n (the number of periods) for the following loan at the given annual rate. Semiannual payments of $5,000 are made for 12 years to repay a loan at 6.15% compounded semiannually. il (Type an integer or decimal rounded to four decimal places as needed.) n=0

Answer 1

ANSWER :
Given that consider the rate per period and in the nomber of periods for the following loan at the given annual rate semiannual payments consider the quatation P = $5,000 - payment time = t = 12 re pay soan = 1= 6151 Herne Dis e semiannually payment I is the annual rate and t is the time period in year. using the formula no t(m) Here I is the annual rate and n is the nomber of periods. t is the the time period in year .

M is the total number of half year in the given time period i is the rate per period here the interest componds terminantly semiannually the rate given in the equation is for one year - in one year there are a half year. 4 herefore the nomber of period in 12 years is n = 12(2) = 24 Here the interest componds semiannually. the nate given in the question is for one year in one year there 2 half the nate per periods is years therefore 6:15 2(100)

- 6.15 200 1 = 06 07 9 3:07.4 the rate per period is 3.074. the total number of period is = 24