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. Quarterly deposits of $1,400 are made for 6 years into an annuity that pays 5.5% compounded quarterly. i =____(Type an integer or decimal rounded to four decimal places as needed.) n =___

Solution

formula for calculating annual compound interest isV = P(1+r/n)^nt

V = the future value of the investment
P = the principal investment amount
r = the annual interest rate
n = the number of times that interest is compounded per year
t = the number of years the money is invested for

= 1400(1+0.055/4)²⁴

⁼ 1400(1.014)²⁴

= 1400(3.214)

= $ 4,499.6

effective interst rate is 5.196%

number of periods is 24