Find I (The Rate Per Period) and N (The Number

question 74

Multiple Choice

Find i (the rate per period) and n (the number of periods) for the loan at the given annual rate.
-Annual payments of $378.80 are made for 8 years to repay a loan at 6.4% compounded annually.

• A) i = 0.064; n = 8
• B) i = 0.00533; n = 12
• C) i = 0.064; n = 16
• D) i = 0.008; n = 8

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Definitions:

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, resulting in those who have higher incomes being taxed at a higher rate.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount or income increases.

Proportional Tax

A tax system wherein the tax rate is fixed and applied uniformly to all taxpayers, regardless of their income level.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower incomes.