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/sci/ - Science & Math

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4466211 No.4466211 [Reply] [Original]

trying to figure out how to find "r"

950 = (35/r) * (1 - (1/(1+r)^t) + 1000/(1+r)^t

It looks easy I just can't find my yield to maturity (r)...it should be around 3.5%

>> No.4466232

T and t = 20, cuz 2 payments per year for 10 years = 20...

the only unknown is "r"

>> No.4466245
File: 107 KB, 585x652, 1276489112089.jpg [View same] [iqdb] [saucenao] [google]
4466245

0.07

>> No.4466257

>>4466245

http://www.wolframalpha.com/input/?i=35%2Fx*%281-+%281%2F%281%2Bx%29^20%29%29+%2B+%281000%2F%281%2Bx
%29^20%29+%3D+950

ran it on wolfram and r = 3.8

still dunno how to solve for r though...

>> No.4466278

1000x - 35 + 35(1+ x)^20 = 950 * x * (1+x)^20

solve for x

why is this so hard

>> No.4466297

http://lmgtfy.com/?q=geometric+series

>> No.4466314

NVM LOL IM SO SMART

just took the logs of

1000x - 35 + 35(1+ x)^20 = 950 * x * (1+x)^20

like a boss, shit is easy

>> No.4466620

>>4466297

ya but how do i solve it for the growth rate, "r" in this case

the logs didn't work actually lol