Calculating interest rates

travlnman · #1 Oct 28, 2007, 09:56 AM

I am not sure of the correct formula to calculate interest rates. If I had a PV of $400 a FV of $684 and 11 years to pay, what is my interest?

ebaines · Oct 29, 2007, 05:23 AM

The formula to remember is:

FV = PV*(1+i)^N

You need to solve this for i. Manipulating this to get i by itself gets you:

i = (FV/PV)^(1/N) - 1

You can take it from there.



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