Hi Jennifer,

This is quite a bit of time after your posting, but for anyone else 
encountering this:

I had this problem because I was trying to test it out in the Studio 
editor. However, it can only be tested in a live course. See the note 
at: 
http://edx.readthedocs.io/projects/edx-partner-course-staff/en/latest/exercises_tools/external_graders.html#external-grader-example

To validate your external grader and test a problem, you must view the 
> component in the LMS, in a published unit. If you attempt to test a problem 
> in Studio, the message “Error: No grader has been set up for this problem” 
> displays.
>

On Wednesday, April 29, 2015 at 8:48:45 PM UTC-4, sandy wrote:
>
> This is the problem that i have wrote in the blank advance problem in edX:
>
> <problem title="Embedded Code Box" display_name="" graceperiod="0 day 5 
> hours 0 minutes 0 seconds" markdown="null" rerandomize="never" 
> showanswer="always" start="2013-02-05T00:00" 
> xqa_key="qaijS3UatK020Wc0sfCtFe0V6jpB4d64">
>   <text>
>     <p> We are searching for
>       the smallest monthly payment such that we can pay off the
>       entire balance of a loan within a year.</p>
>     <p> The following values might be useful when writing your solution</p>
>     <blockquote>
>       <p><strong>Monthly interest rate</strong>
> = (Annual interest rate) / 12<br/>
> <strong>Monthly payment lower bound</strong>
> = Balance / 12<br/>
>
> <strong>Monthly payment upper bound</strong> = (Balance x
>         (1 + Monthly interest rate)<sup>12</sup>) / 12
> </p>
>     </blockquote>
>     <p>The following variables contain values as described below:</p>
>     <ol>
>       <li>
>         <p><code>balance</code> - the outstanding balance on the credit 
> card</p>
>       </li>
>       <li>
>         <p><code>annualInterestRate</code> - annual interest rate as a 
> decimal</p>
>       </li>
>     </ol>
>     <p>Write a program that uses these bounds and bisection
>         search (for more info check out <a href="
> http://en.wikipedia.org/wiki/Bisection_method"; target="_blank">the 
> Wikipedia page
>         on bisection search</a>)
>         to find the smallest monthly payment <em>to the cent</em>
>         such that we can pay off the
>         debt within a year.</p>
>     <p>Note that if you do not use bisection search, your code will not 
> run - your code only has
>       30 seconds to run on our servers. If you get a message that states 
> "Your submission could not be graded. Please recheck your 
>       submission and try again. If the problem persists, please notify the 
> course staff.", check to be 
>       sure your code doesn't take too long to run.</p>
>     <p>The code you paste into the following box should not specify the 
> values for the variables <code>balance</code> 
>       or <code>annualInterestRate</code> - our test code will define those 
> values 
>       before testing your submission. </p>
>   </text>
>   <coderesponse>
>     <textbox rows="10" cols="70" mode="python" tabsize="4"/>
>     <codeparam>
>       <initial_display/>
>       <answer_display>
> monthlyInterestRate = annualInterestRate/12
> lowerBound = balance/12
> upperBound = (balance * (1+annualInterestRate/12)**12)/12
> originalBalance = balance
>
> # Keep testing new payment values 
> #  until the balance is +/- $0.02
> while abs(balance) &gt; .02:
>     # Reset the value of balance to its original value
>     balance = originalBalance
>     # Calculate a new monthly payment value from the bounds
>     payment = (upperBound - lowerBound)/2 + lowerBound
>
>     # Test if this payment value is sufficient to pay off the 
>     #  entire balance in 12 months
>     for month in range(12):
>         balance -= payment
>         balance *= 1+monthlyInterestRate
>
>     # Reset bounds based on the final value of balance
>     if balance &gt; 0: 
>         # If the balance is too big, need higher payment
>     #  so we increase the lower bound
>         lowerBound = payment
>     else:
>         # If the balance is too small, we need a lower
>     #  payment, so we decrease the upper bound
>         upperBound = payment
>
> # When the while loop terminates, we know we have 
> #  our answer!
> print "Lowest Payment:", round(payment, 2)
> </answer_display>
>       <grader_payload>
> {"grader": "ps02/bisect/grade_bisect.py"}
> </grader_payload>
>     </codeparam>
>   </coderesponse>
>   <text>
>     <div>
>       <b>Note:</b>
>       <p>Depending on where, and how frequently, you round during
>         this function, your answers may be off a few cents in
>         either direction. Try rounding as few times as possible
>         in order to increase the accuracy of your result. </p>
>     </div>
>     <section class="hints">
>       <h3>Hints</h3>
>       <div class="collapsible">
>         <header>
>           <a href="#" id="ht3l">Test Cases to test your code with. Be sure 
> to test these on your own machine - 
>     and that you get the same output! - before running your code on this 
> webpage! </a>
>         </header>
>         <section id="ht3">
>           <p><b>Note:</b> The automated tests are lenient - if your 
> answers are off by a few cents 
>     in either direction, your code is OK. </p>
>           <p>Test Cases:</p>
>           <ol>
>             <li>
>               <p>
>                 <pre>
>                   <code>
>           Test Case 1:
>           balance = 320000
>           annualInterestRate = 0.2
>
>           Result Your Code Should Generate:
>           -------------------
>           Lowest Payment: 29157.09
>       </code>
>                 </pre>
>               </p>
>             </li>
>             <li>
>               <p>
>                 <pre>
>                   <code>
>           Test Case 2:
>           balance = 999999
>           annualInterestRate = 0.18
>           
>           Result Your Code Should Generate:
>           -------------------
>           Lowest Payment: 90325.07
>       </code>
>                 </pre>
>               </p>
>             </li>
>           </ol>
>         </section>
>       </div>
>       <div class="collapsible">
>         <header>
>           <a href="#" id="ht4">The autograder says, "Your submission could 
> not be graded." Help!</a>
>         </header>
>         <section id="ht4">
>           <p> If the autograder gives you the following message:</p>
>           <pre>
> Your submission could not be graded.
> Please recheck your submission and try again. If the problem persists, 
> please notify the course staff.
>       </pre>
>           <p>Don't panic! There are a few things that might be wrong with 
> your code that you should 
>         check out. The number one reason this message appears is because 
> your code timed out.
>         You only get 30 seconds of computation time on our servers. If 
> your code times out,
>         you probably have an infinite loop. What to do?</p>
>           <p>The number 1 thing to do is that you need to run this code in 
> your own local 
>         environment. Your code should print one line at the end of the 
> loop. If your code never 
> https://openedx.atlassian.net/browse/TNL-1773prints anything
>         out - you have an infinite loop!</p>
>           <p>To debug your infinite loop - check your loop conditional. 
> When will it stop? 
>         Try inserting print statements inside your loop that prints out 
> information (like variables) - are you
>         incrementing or decrementing your loop counter correctly?
>         Search the forum for people with similar issues. If your search 
> turns up nothing, 
>         make a new post and paste in your loop conditional for others to 
> help you out with.</p>
>           <p>Please don't email the course staff unless your code 
> legitimately works and prints out the
>         correct answers in your local environment. In that case, please 
> email your code file,
>         a screenshot of the code printing out the correct answers in your 
> local environment,
>         and a screenshot of the exact same code not working on the tutor. 
> The course staff is
>         otherwise unable to help debug your problem set via email - we can 
> only address platform issues.</p>
>         </section>
>       </div>
>     </section>
>     <br/>
>   </text>
> </problem>
>
> everytime students tried to answer it, then check..
> This error occurs:
> Error: No grader has been set up for this problem
>

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