Not able to solve following

I need to find a way to solve a



http://www.efunda.com/formulae/finance/images/apr_r.gif


I have n, P and C but I need to solve for a (its related to newton Raphson Method)


Please help and advice

Hey aayushmail007.

Do you have to simply apply the Newton-Rhapson method to find the value of a (a good enough approximation)?

i have no idea how to get to the solution to find value of a

Try expanding the (1+a)^n terms using the binomial method and then simplify these by noting that - 1 takes away the +1 term.

still getting a big bad equation , need something simple to solve it

Try looking up solutions using Newton-Rhapson to solve implicit functions.

You can get the derivative by using implicit differentiation and you should get a function of a equal to zero where f(a) = 0 and this is done by some standard algebra.

Once you have this equal to zero then use a root finding algorithm to get your value for a.