So, my Principles of Corporate Finance professor tried to tell us that it is not possible to find the interest rate (R) using the future value formula where
FV=PV(1+R)^t (where T= time)
Yeah, I'm sure that you math geeks out there already see the problem with his statement.
The answer is ((FV/PV)^1/T)-1=R
Solved it in less than two minutes... it took him three to explain how to use the buttons on a financial calculator (which I also know how to use).
Yeah, I pointed out that I had the answer while he was explaining the financial calculator functions without using financial calculator functions... I don't think he likes me
FV=PV(1+R)^t (where T= time)
Yeah, I'm sure that you math geeks out there already see the problem with his statement.
The answer is ((FV/PV)^1/T)-1=R
Solved it in less than two minutes... it took him three to explain how to use the buttons on a financial calculator (which I also know how to use).
Yeah, I pointed out that I had the answer while he was explaining the financial calculator functions without using financial calculator functions... I don't think he likes me
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