Determine the number of compounding periods (n) using the information in the graph below: Time of payment end of every 6 months Length of annuity 13 years Interest rate per year 18.2% Frequency of compounding semi-annually

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.