Solving the TVM equation for the interest rate
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04-16-2018, 05:00 AM
Post: #10
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RE: Solving the TVM equation for the interest rate
(04-15-2018 04:37 PM)Ángel Martin Wrote: I looked into the very same subject when I wrote the HP-41 MCODE version of TVM$. There is somewhere in the calculator literature a very good approximation. I don't remember where. I spent some time trying to figure out how it worked and finally realized that it was a continued fraction approximation to the solution. It's only got 5 or 6 terms and this suitable as a starting point. The problem is that it does not tell you whether there is a solution for the given input. There can be 0, 1, 2 or more interest rates that generate the same income stream for given starting values. |
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