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Thank everyone for suggestion.
F=A*((1+r)^n-1)/r
r = interest rate
n = number of installment for a fixed investment plan
A = fixed amount for each installment
F = Final capital value
For example, an insurance saving plan offers $20,000 return in the
next
20 years by paying $600 every year. How to determine the interest
rate?
((1+r)^n-1)/r = $20,000 / $600 = 33.333, when n is 20, then r will
equal to approximate 5%.
0% < r, r is a real number for the interest rate, which could be 10%
or
300%
n is a positive integer for any number of term.
Does anyone have any suggestion on how to express r in term of F and
A?
Thank everyone for any suggestion
Eric
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