A = P x ((i/12)/((1+(i/12)-1)^(1/360)) + (i/12)) 

i = Interest Rate/year 
A = 3,000 
P = 500,000 

Determine Equation, in Terms of i = (?) [ Please, help me simplify equation, to be, in terms of i = ] 
How do I Isolate Equation, and Solve(find) Equation, in terms of i ?

knownhappyman68  Sep 13, 2017
social bar

1+0 Answers


I believe your equation is a TVM(Time Value of Money) formula for finding a loan payment and it should  be written like this:


$3,000=$500,000* i*{[1 + i]^360 / ([1 + i]^360 - 1)}, solve for i

When you raise (1+i) to 360, that means your interest rate is already divided by 12. This appears to be a mortgage for $500,000 amortized over 30 years, or 360 months, with a monthly payment of $3,000 @ i% compounded monthly. 

If I'm correct in my assumption, then there is no DIRECT solution for i%. You can only find i% through iteration and interpolation. When I plug your numbers into my computer, it comes up with a rate of 6% compounded monthly. That means the i% in your formula would be 6% / 12 =0.005, which is the monthly interest rate.

Guest Sep 13, 2017
edited by Guest  Sep 13, 2017

33 Online Users

We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details