How to compute compounded interest rate?
I have the following scenario where i invest variable开发者_如何转开发 amount of principal every month,
Investment Month
$300 Jan
$200 Feb
$100 Mar
and i get a return of,
Returns Month
$1000 Apr
How do i calculate the nominal annual interest rate if the amount is compounded monthly?
300*(1 + p/12)^(3) + 200*(1 + p/12)^(2) + 100*(1 + p/12)^(1) == 1000
Use bisection or something else to solve numericaly.
p=286%
EDIT: Best way to solve this numericaly is to apply Newton–Raphson method, since this equation can be simply derivated analytically.
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