4 terms

Solving for interest rates, annuities payments

Grwoth rate aka interest rate

The rate at which the money had grown from one year to another year is known as 'interest rate' or growth rate.

Computing Growth rate

G = ( ( fv / pv ) ^ 1/n) -1

Finding the number of periods (N)

(1+r)^n= FV/PV

log (1+r) (FV/PV) = n

log (1+r) (FV/PV) = n

To calculate N

N = ln(FV/PV) / ln(1+r)