Find i​ (the rate per​ period) and n​ (the number of​ periods) for the following loan at the given annual rate. Annual payments of ​$4,700 are made

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 ​$4,700 are made for 10 years to repay a loan at 4.85​% compounded annually.

i= ______ (type an integer or a decimal_

n = __________

Answer 1

i = r = 4.85% = 0.0485; n = 1.

Then value of loan PV = PMT[1 - (1 + i)^-nt]/i = 4700[1 - (1 + 0.0485)^-10]/0.0485 = $36557.98