Solving for an unknown interest rate given the PV,FV,PMT,and N is an iterative (or trial-and-error)process.

Name: Solving for an unknown interest rate given the PV,FV,PMT,and N is an iterative (or trial-and-error)process.
Brand: Quizplus
Rating: 4.9 (29 reviews)

Question

Quizplus · Accepted Answer

This is true. Because there is no explicit formula to solve for the interest rate, it requires an iterative process of guessing and checking until the present value of the future cash flows equals the initial investment.

Solving for an Unknown Interest Rate Given the PV,FV,PMT,and N