Calculation of unknown interest rate

Input(s)

F: Amount to be Payed After End of tt Years (currency unit)

P: Amount Borrowed (money)

t\mathrm{t}: Time at Which F Needs to be Payed (years)

Output(s)

i: Interest Rate (fraction)

Formula(s)

i=exp(ln(FP)t)1\mathrm{i}=\exp \left(\frac{\ln \left(\frac{\mathrm{F}}{\mathrm{P}}\right)}{\mathrm{t}}\right)-1

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 2, Page: 65.


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