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How to compute compounded interest rate?

开发者 https://www.devze.com 2023-01-13 03:08 出处:网络
I have the following scenario where i invest variable开发者_如何转开发 amount of principal every month,

I have the following scenario where i invest variable开发者_如何转开发 amount of principal every month,

Investment Month
$300       Jan
$200       Feb
$100       Mar

and i get a return of,

Returns    Month
$1000      Apr

How do i calculate the nominal annual interest rate if the amount is compounded monthly?


300*(1 + p/12)^(3) + 200*(1 + p/12)^(2) + 100*(1 + p/12)^(1) == 1000

Use bisection or something else to solve numericaly.

p=286%

EDIT: Best way to solve this numericaly is to apply Newton–Raphson method, since this equation can be simply derivated analytically.

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