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Solving the TVM equation for the interest rate
02-13-2020, 10:42 AM (This post was last modified: 02-13-2020 10:46 AM by Gamo.)
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Gamo Offline
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RE: Solving the TVM equation for the interest rate
From HP-55 Mathematics Programs

The Suggested Guess for

1. Direct Reduction Loan Interest Rate with known [n, PV and PMT]
2. Sinking Fund Interest Rate with known [n, FV and PMT]

To find the guess the HP-55 programs book used these formulas.

1. Direct Reduction Loan Interest Rate

[1 / (PV / PMT)] - [(1 / n^2) x (PV / PMT)]

2. Sinking Fund Interest Rate

[((FV/PMT) - n) x 2] ÷ [(n - 1)^2 + (FV/PMT)]

Gamo 2/2020
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RE: Solving the TVM equation for the interest rate - Gamo - 02-13-2020 10:42 AM



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