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 ​$4,700 are made for 11 years to repay a loan at 4.85​% compounded annually.

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

n = ________-

Answer 1

i= 0.0485;

PMT = $4700

FV = 0

PV = PMT(1 - (1 + i)^-n)/i = 4700(1 - (1 + 0.0485)^-11)/0.0485 = $39349.53