a. number of periods over which interest is calculated on the loan
Step-by-step explanation:
A formula should always be accompanied by an explanation of what it calculates and the meaning of each of its variables. This formula calculates P, the periodic payment on a loan of n periods at interest rate i (compounded) per period. The principal amount of the loan is PV.
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The same formula can also be used to calculate an annuity from which payment P is received at the end of each of n periods. The amount invested is PV and the interest rate per period (compounded per period) is i.
Composing function is applying one function to the result of another and an arithmetic operation is when you add, subtract, multiply, or divide two functions.
