- #1
cjp88
- 8
- 0
I'm having some trouble understanding how to solve for i. This is the formula for compounding interest. I'm reading this example which shows how to solve for i if you double your money in 5 years. So it gives this example:
(A/P)^1/n - 1 = i
So it gives A for 2 and P for 1, n would be 5 so the answer should be:
(2/1)^1/n - 1 = i
They shown the answer as 0.149 however I cannot get this same answer for whatever reason.
When I put in 2/1 I get 2, then 2^1/5 would be 0.4, minus 1 would make it -0.6.
If this answer is indeed right, could someone please show me what I'm missing.
(A/P)^1/n - 1 = i
So it gives A for 2 and P for 1, n would be 5 so the answer should be:
(2/1)^1/n - 1 = i
They shown the answer as 0.149 however I cannot get this same answer for whatever reason.
When I put in 2/1 I get 2, then 2^1/5 would be 0.4, minus 1 would make it -0.6.
If this answer is indeed right, could someone please show me what I'm missing.