7. The following formula is used to calculate the interest rate per period o f a loan when the compounding period does not match the payment period. n/p r 11 In this formula,r the rate per payment period, i the annual rate, n the num- ber of compounding periods per year, and p the number of payments per year. a. List the operations involved in evaluating this formula in the order they are completed. b. Use the formula to calculate r when i 7.5%, n 2, and p 12. Write down intermediate calculations as accurately as possible, or use parentheses to enter the entire expression into your calculator at once. Remember that percents must be written as decimals in these types of formulas. Write your final answer as a percent rounded to four decimal places. c. Use the formula to calculate the interest rate per period for a loan if there are 4 payments per year, the annual rate is 8.25%, and there are 12 compounding periods per year. Write your final answer as a places

To get the best loan rates available, the Riches want to save enough money to place 20% down on a $160,000 home. They plan to make monthly deposits of $125 in an investment account that offers 8.5% annual interest compounded semiannually. Will the Riches have enough for a 20% down payment after five years of saving? How much money will they have saved?