1. ## 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!

2. Originally Posted by Quick
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

3. Originally Posted by Jhevon
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).