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Math Help - high exponentials

  1. #1
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    high exponentials

    250,000(1+i)^15 = 51,200((1+i)^15 -1)/i)

    solve for i.

    Is there a simple step I'm missing to make solving for i easier??

    (this comes from setting two future value equations equal to one another to determine at what interst rate a lifetime annuity = a lump sum...

    FV=PV(1+i)^n=PMT((1+i)^15 -1)/i) where PV = the lump sum of 250,000 and PMT = lifetime annuity of 51200 and i is the interest rate). The answer is 24.83% (thanks to trial and error), but I am trying to get there algebraically...

    THANKS for any ideas!
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  2. #2
    is up to his old tricks again! Jhevon's Avatar
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    Quote Originally Posted by Quick View Post
    <answer in a sec>
    so we're reserving our spot now?

    don't worry about it, Quick. I know the pain of responding only to realize that someone (or several someones) posted before you
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  3. #3
    MHF Contributor Quick's Avatar
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    Quote Originally Posted by Jhevon View Post
    so we're reserving our spot now?

    don't worry about it, Quick. I know the pain of responding only to realize that someone (or several someones) posted before you
    actually what happened was that I looked at the problem wrong (I said "Do you know about logarithms?"), thinking that the answer was a simple logarithm problem. Then I saw it wasn't so I quickly edited it so that I could post an actual answer, and then I just deleted it, because I've got school tomorrow and I need to sleep (It's 10:42 for me right now).
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