The loan's effective rate and interest compound every two months then the value of n would be 6.
Given that,
When calculating a loan's effective rate, the interest compounds every two months.
We have to determine,
What value of n do you plug into your equation?
According to the question,
The calculation of compounded interest would be derived with the following formula:
[tex]\rm P = \left (1+\dfrac{r}{n}\right)^{nt}\\\\[/tex]
In a year there are 12 months and when the interest rate is said to be compounded every two months then it implies that the number of months would be 6 months.
Then,
The value of n is,
[tex]\rm 2n = 12\\\\n = \dfrac{12}{6}\\\\n = 6[/tex]
Hence, The loan's effective rate and interest compounds every two months then the value of n would be 6.
For more details, about Interest Rate refers to the link given below.
https://brainly.com/question/7967946
