0

Lets say we have this following scenario:

1000000 = 1000 * (1/r) * [1-(1/(1+r)^43)],

where PV=1000000, n=43, C=1000, r=?

We have to find "r", so how do we manually go about finding "r"? I know "r" can be found by using a financial calculator but I am interested in knowing how it can be calculated manually as such stuff is not taught our class.

SAR
  • 297
  • You'd have to isolate for $r$. But that involves taking the 43rd root of some expression. It's not an easy calculation. Most of these textbooks will have tables at the back for precomputed values. – Tyler Hilton Apr 07 '16 at 16:56
  • This site uses Mathjax Formatting. Wish I could provide you with a good link, but there are some tips here. – S.C.B. Apr 07 '16 at 16:57

0 Answers0