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Finding the Interest Rate of an Annuity
Finding the Interest Rate of an Annuity
Finding the Interest Rate of an Annuity
Finding the Interest Rate of an Annuity
Perform the following steps to find the interest rate (
principal (
) is 1,000, number of compounding periods (
p
2,000.
1. On the Home screen, enter the equation
to solve for
.
p
2. Enter the equation to solve for
3. Enter the equation to solve for i using the
with operator.
solve(s=p
†
(1+i)^n,i) | s=2000
and
n=6
Result: The interest rate is 12.246%.
Note:
To enter the "with" ( | ) operator: 2
•
[K]
Press 8 ¸ to obtain a floating-
•
point result.
Activities
.
n
and
p=1000
) of an annuity where the starting
i
) is 6, and the future value (
n
) is
s
766
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