What is the equation to calculate an interest rate if you kn

What is the equation to calculate an interest rate if you know the present value, years, and future value.

Thanks
What is the equation to calculate an interest rate if you know the present value, years, and future value.

Thanks

Thanks

Solution

Future Value=Present Value*(1+r/k)^n

where r is the Interest rate

k is the compunding Intervals

n is the number of Periods

Assuming k is for one year

FV=PV*(1+r)^n

FV/PV=(1+r)^n

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

r={(FV/PV)^(1/n)} -1

Hence the interest rate can be calculated by this

 What is the equation to calculate an interest rate if you know the present value, years, and future value. Thanks What is the equation to calculate an interest

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