Question

For the following investment, find the total number of compounding periods (n) and the interest rate per period (i) that you would substitute into the future value or present value formula . (Do not round.)

Answer 1

• rate: 0.019
• periods: 14

Step-by-step explanation:

You are correct that the interest rate per period is 1.9%. The question asks for that answer to be expressed as a decimal, so is 1.9/100 = 0.019.

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You are correct that there are 14 semiannual periods in 7 years.