Find i the rate per period and n the number of periods for t

Find i (the rate per period) and n (the number of periods) for the following annuity.

Monthly deposits of $210 are made for 5 years into an annuity that pays 5.5% compounded monthly.

i =_____ (Round to four decimal places); n =______

Solution

5 years into an annuity that pays 5.5% compounded monthly.

i = 5.5%/12 = 0.055/12 =0.004583

n = no. of years*12 = 5*12 = 60