Solve for i

N

NateyNateNate

New member
Joined
Sep 10, 2020
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4
Please help solve for i

Original formula:
1599779566344.png

I'm stuck at:

i x ( F/P ) = ( ( 1 + i ) ^ n ) - 1

Greatly appreciated. Thank you. Feel free to post a picture if it's easier
 
NateyNateNate said:
Please help solve for i

Original formula:
View attachment 21561

I'm stuck at:

i x ( F/P ) = ( ( 1 + i ) ^ n ) - 1

Greatly appreciated. Thank you. Feel free to post a picture if it's easier
Click to expand...
1599781762112.png
Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520

Please share your work/thoughts about this problem.
 
Lets just call F/P, A.
So you have Ai + 1= (1+ i)^n.
Can you now try to write this last equation in a polynomial in u = 1+i ?
 
NateyNateNate said:
Please help solve for i

Original formula:
View attachment 21561

I'm stuck at:

i x ( F/P ) = ( ( 1 + i ) ^ n ) - 1

Greatly appreciated. Thank you. Feel free to post a picture if it's easier
Click to expand...
This cannot be solved algebraically for 'i'.

In what course this assignment was given?

What were you taught about solving for roots of non-linear equations?
 
It is, in fact, an nth degree polynomial equation. There is no general formula or method for such polynomials.
 
NateyNateNate said:
It's the calculation for the future value of annuity, the i is for interest rate.

View attachment 21567
Click to expand...
We know where the formula is mostly used. But we wanted to know:

In what course this assignment was given?​
​
Was the class a math or a finance or an engineering or something else. The expectation changes with designation of class.​
​
What were you taught about solving for roots of non-linear equations?​
 
Last edited by a moderator:
Subhotosh Khan said:
We know where the formula is mostly used. But we wanted to know:

In what course this assignment was given?​
​
Was the class a math or a finance or an engineering or something else. The expectation changes with designation of class.​
​
What were you taught about solving for roots of non-linear equations?​
Click to expand...
It is a finance class in an MBA program. We are allowed to use calculator. I am just curious about how to solve for it.
 
NateyNateNate said:
It is a finance class in an MBA program. We are allowed to use calculator. I am just curious about how to solve for it.
Click to expand...
You'll have to use "iterative" methods (e.g. Newton-Raphson, Bisection, etc.) to approximate the solution to a desired accuracy.
 
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