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This may be kind of obvious, but our finance lecturer just assumes we know how to do stuff like this and the slides give no explanation. Jumping from question to answer

How do I get $r$ from this?

$27.397= \displaystyle \frac{1- \displaystyle \frac{1}{(1+r)^{36}} }{r}$


Answer:

$r=1.558\%$

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    Your finance lecturer is paid to teach you stuff. Why not ask her how she expects you to solve such equations?2011-05-19

1 Answers 1

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You want to find the root $r>0$ of $ f(r) = \bigg[1 - \frac{1}{{(1 + r)^{36} }}\bigg]\bigg/r - 27.397, $ that is the $r > 0$ for which $f(r)=0$. Using Wims Function Calculator, I get $r \approx 0.0155764414039$, which is what you want.