Find i​ (the rate per​ period) and n​ (the number of​ periods) for the following annuity. Monthly deposits of ​$400 are made for 6 years into an annuity that pays 7​% compounded monthly.

Question

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

Monthly deposits of ​$400 are made for 6 years into an annuity that pays 7​% compounded monthly.

i= ________

​(Type an integer or decimal rounded to four decimal places as​ needed.)

Answer 1

fv=p(1+int/c)^(nt)

Since 7% is monthly; 84% is for the year?????????????

It sounds more real if it's at 7%/yr.

Since there's no premium; I'll start at $400.

So: fv=400(1+.07/12)^(6*12)=$608.04.

This is a 6yr pd.

principal

int

compound

yrs

times/yr