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Math Help - PV formula solving for i

  1. #1
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    PV formula solving for i

    How can I solve somthing like this for i

    2=\frac{1-(\frac{1}{1+i})^{40}}{i}

    The textbook I'm looking simply states that it's "difficult" to solve by and that it's best to just use a financial calculator.
    Last edited by downthesun01; May 8th 2012 at 02:39 AM.
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  2. #2
    Super Member ILikeSerena's Avatar
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    Re: PV formula solving for i

    Quote Originally Posted by downthesun01 View Post
    How can I solve somthing like this for i

    2=\frac{1-(\frac{1}{1+i})^{40}}{i}

    The textbook I'm looking simply states that it's "difficult" to solve by and that it's best to just use a financial calculator.
    Hi downthesun01!

    The solution is i \approx 0.499999954781082

    See here:
    2=\frac{1-(\frac{1}{1+x})^{40}}{x} - Wolfram|Alpha

    Indeed, solving it analytically is not going to work out.
    Thanks from downthesun01
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