Payments Annuity



how to find interest rate using annuity formula?



using following Annuity formula

FV=PV*((((1+i/n)^n*y) -1)/(i/n))

how can you calculate interest rate i.

FV = Future value
PV = Present value
i = interest rate
n = number of periods in a year
y = number of years

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One Response to “how to find interest rate using annuity formula?”

  • Didn't hire me? Your mistake:

    You cannot find i just with algebra. You need to use a financial calculator or other software to estimate it.

    I suggest looking for information on the pmt() function in Excel help.

    EDIT: Remember that i is the percent interest rate divided by 100. For example, if the interest rate is 34%, i=.34