document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=247104>Question 247104</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Akhil wants to invest Rs 2,500 every year for a period of 6 years so that he can receive Rs.18,000 at the end of tenure.What is the interest rate at which he should invest? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #180324 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=180324\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> payment amount is equal to 2500 at the beginning of each year.<BR>\n" );
document.write( "future value of all the payments is equal to 18000.<BR>\n" );
document.write( "compounding is annual (once a year).\r<BR>\n" );
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document.write( "answer is interest rate = 5.233196982 percent per year.\r<BR>\n" );
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document.write( "progression each year is as follows.\r<BR>\n" );
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document.write( "displays have truncated but the actual calculations are being done by the full numbers stored in calculator memory.\r<BR>\n" );
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document.write( "end of year 1 you have 2500 * 1.052 = 2630<BR>\n" );
document.write( "end of year 2 you have (2630 + 2500) * 1.052 = 5399<BR>\n" );
document.write( "end of year 3 you have (5399 + 2500) * 1.052 = 8312<BR>\n" );
document.write( "end of year 4 you have (8312 + 2500) * 1.052 = 11378<BR>\n" );
document.write( "end of year 5 you have (11378 + 2500) * 1.052 = 14605<BR>\n" );
document.write( "end of year 6 you have (14605 + 2500) * 1.052 = 18000\r<BR>\n" );
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document.write( "I used a financial calculator to get the result since I was unable to find a formula that would solve for the interest rate.\r<BR>\n" );
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document.write( "I believe the calculator solves by doing iterations until it narrows down to a solution.  You can also do this manually but it takes much much longer.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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