[cristina1]

Hi Plen,

I´m trying to calculate the interest rate for an annuity, knowing the PV, the annuity and the number of periods and I´m struggling with the formula. I don´t understand how does (1+r)^10 cancel put in the equation (1+r)^10 – 1/ (1+r)^10 / r to result in [ -1/r ] as (1+r)^10 in the nominator it´s subtracting 1, not multiplying.

for me {[(1+r)^10 – 1] / (1+r)^10} / r –> 1- [1/(1+r)^10] which leads back to the starting point :/

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