- #1

Toby_Obie

- 19

- 0

I came across the following formula after asking for practical applications of math in finance and other sciences, it concerns mortgage payments

[tex]A = Pi/1-(1+i)^-n[/tex]

The above denominator end part reads (1+i)^(-n)

As a mathematical question, is it possible to rearrange the equation to find i ?

Wikipedia says

One can rearrange the formula to solve for any one term, except for i, for which one can use a root-finding algorithm.

Is there a way of doing this ? What root finding algorithm would be used ?

Thanks for your help