Find i​ (the rate per​ period) and n​ (the number of​ periods) for the following loan at the given annual rate.

Question

Find i​ (the rate per​ period) and n​ (the number of​ periods) for the following loan at the given annual rate.

Annual payments of ​$3,800 are made for 14 years to repay a loan at 6.85​% compounded annually.

i= ________ ​(Type an integer or a​ decimal.)

Answer 1

This formula is for time:

N-1/30*LN(1+b/p*(1-(1+apr/365)^30))/LN(1+apr/365).

N-months 12*14=168mo.

apr-int (given 6.85%/12=.5708333%/mo. or .057.83333/mo)

b-balande=3800*14=$53200

p-payment

Going by the month; 3800/12=316.666........

apr=.0685

N=168

When paying $491.05/mo; you'll be even at 168 months.

If paying minimum; It'll take