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    travlnman's Avatar
    travlnman Posts: 1, Reputation: 1
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    #1

    Oct 28, 2007, 10:56 AM
    Calculating interest rates
    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's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Oct 29, 2007, 06:23 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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