
Jerry N.
asked 11/02/20Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual deposits of $2,500 are made for 12 years into an annuity that pays 7.5% compounded semiannually.
Find i (the rate per period) and n (the number of periods) for the following annuity.
Semiannual deposits of $2,500 are made for 12 years into an annuity that pays 7.5% compounded semiannually.
i= ______________ (Type an integer or a decimal.)
1 Expert Answer

Yefim S. answered 01/04/21
Math Tutor with Experience
i = 7.5/2 = 3.75%; n = 12/0.5 = 24;
FV = PMT[(1 + i)n - 1]/i = 2500((1 + 0.0375)24 - 1]/0.0375 = $94629.21
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Zen F.
Do you have the Annuity Formula referenced from your coursework?11/02/20