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

question 65

Multiple Choice

Find i (the rate per period) and n (the number of periods) for the annuity.
-Monthly deposits of $1600 are made for 6 years into an annuity that pays 9% compounded monthly.

• A) i = 0.75; n = 12
• B) i = 0.0075; n = 72
• C) i = 0.75; n = 6
• D) i = 0.09; n = 72

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Definitions:

External Funds

Capital that comes from outside of a company, which can include debt financing from banks or equity financing from investors.

Assets And Liabilities

The fundamental components of a company's or individual's financial position, where assets represent resources owned, and liabilities represent obligations owed to others.

Spontaneously Generated Funds

Internal funds generated by a company's operations without the need for external financing.

Retained Earnings

The portion of net income not distributed to shareholders but reinvested in the business or kept as reserve.