Have this question in relation to some investment exam I am doing, I am a maths novice being some years since leaving school etc, ok enough of the excuses. Example FV = future value PV = present value R = interest rate N = number of compounding periods my PV is 6000 and my FV is 10000. Compounding periods is 12, I need to find the interest rate, thus... 100000 = 6000 (1 + R) to power of 12 (sorry dont know how to represent that on key board). substitution: 1.67 = (1 + R) power 12 substitution 2: 12√1.67 = 1 + R 1.0435 - 1 = R R = 4.45. All very well, but I lose understanding of how the maths is applied at sub 2, my text book has given this model answer. For a novice please show me step by step what 12√1.67 means. Thanks you Darren.