Interest rate required for a capital to reach a given future value when placed for a duration of N years formula
Description of the Interest rate required for a capital to reach a given future value when placed for a duration of N years formula
Formula allowing the calculation of the interest rate at which a given capital has to be placed for a duration of N in order to reach a future value of KN
Formula
\[ i=100 \times \left( \left( \frac{K_{N}}{K_{0}}\right) ^{\frac {1}{N}}-1 \right) \ \]
Symbols
\(K_{N}\ \)
Future value of the capital
\(K_{0}\ \)
Present value of the capital
\(N\ \)
Number of periods (years)