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 loan at the given annual rate.

Semiannual payments of $4,900 are made for 19 years to repay a loan at 8.35% compounded semiannually.

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

Solution

19 years to repay a loan at 8.35% compounded semiannually.

i = 0.0835/2 = 0.04175

n = 19*no. of years = 19*12 = 228