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Interest rates (composites) that generate specific interest, using principal and deposit periods

ÀÛ¼ºÀÚ Uploader : billy ÀÛ¼ºÀÏ Upload Date: 2019-10-25º¯°æÀÏ Update Date: 2020-01-15Á¶È¸¼ö View : 504

If the principal is a, the annual interest rate is r, and the deposit period is n, then the total amount Wn after n years is as follows.

Wn = a*(1+r)^n

The interest ITR accrued is the total amount less the principal. Then,

ITR = a(1+r)^n - a = a((1+r)^n - 1)

Rearranging,

(1+r)^n = ITR/a + 1

r = (ITR/a + 1)^(1/n) - 1

Expressing in %,

r = 100*((ITR/a + 1)^(1/n) - 1)

*** Âü°í¹®Çå[References] ***

The total amount of principal and interest
http://ezformula.net/esne/aboard/addon.php?file=main_form_detail2.php&fcode=1112629&bgrcode=1018&mgrcode=1111&fupman=prove
r = 100*((ITR/a + 1)^(1/n) - 1)
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