I thought I understood the formual. I understand how the formula gets
me to 1.71; hovwer how does the formula get me to 1.049981059


SEE PAST QUESTION AND COMMENTS BELOW:
I need to know the formula to calculate interst on present and future
value. Example of what I am looking for. What would be the interest
rate by the following combinations of presetn and future values:

PV= 400.00  
Years 11
FV= 684.

Be rest assured I am NOT looking for the answere. RAther a formula or
web-site that will assist me in answering this question. Thank you!


684 = 400(x)^11

684/400 = x^11

11th root (1.71) = 1.049981059 (hOW was this answer figured?)

To check your answer, simply:

400(1.049981059)^11 = 684
Subject: Re: Finance 
From: gbasin-ga on 16 Jul 2005 13:03 PDT 	  
Sorry, realized you wanted a formula, so to clarify:

FV = PV(X)^r (does this mean times the root)
where r is the number of years

X= rth root(FV/PV) (does this meant root times FV diveded by PV)

This is assuming yearly compounding. It would be slightly different if
the interest was compounded monthly/weekly/etc.