Calculator User Manual

Activities 770

Finding the Interest Rate of an Annuity

Finding the Interest Rate of an AnnuityFinding the Interest Rate of an Annuity

Finding the Interest Rate of an Annuity

Perform the following steps to find the interest rate (

i) of an annuity where the starting

principal (

p) is 1,000, number of compounding periods (n) is 6, and the future value (s) is

2,000.

1. On the Home screen, enter the equation

to solve for

2. Enter the equation to solve for

3. Enter the equation to solve for i using the

with operator.

solve(s=p†(1+i)^n,i) | s=2000 and p=1000

and n=6

Result: The interest rate is 12.246%.

Note:

• To enter the “with” ( | ) operator: Í

• Press 8 ¸ to obtain a floating-

point result.