Solving the TVM equation for the interest rate

04152018, 02:55 PM
(This post was last modified: 04152018 02:56 PM by Dieter.)
Post: #3




RE: Solving the TVM equation for the interest rate
(04152018 10:46 AM)Gamo Wrote: I was wondering on how HP doing this TVM on finding the interest [i] also. As far as I can tell the HP92 got the more universal TVM equation as we know it today. The 1977 article says that solving for the interest rate uses the Newton method based on an initial guess which is accurate to 5 decimal places (!). But there is no clue on how they did this. (04152018 10:46 AM)Gamo Wrote: Link to this HP Journal: https://www.dropbox.com/s/6beqloidryfdim...7.pdf?dl=0 Here is a link to all available HP Journals on the HP website. The mentioned HP80 article can be found in the May 1973 issue. There even is a flowchart, but with a wrong description of how the initial interest rate is calculated. Appendix A on page 8 has a different formula that looks better. There even is a more or less complete description of the interest rate algorithm (if PV is given an FV=0). Note that the HP80 did not use the sign convention of later HP financial calculators. Dieter 

« Next Oldest  Next Newest »

User(s) browsing this thread: 1 Guest(s)