Interest Rate

Example #1: What annual percentage rate would be required on a $10,000 investment in order for it to double in 6 years? Interest is compounded annually.

Enter the following values in the input fields:
Present Value = 10,000
Future Value = 20,000
Payment/Deposit = 0
Periods = 6
Periods/Year = 1
Payment/Deposit Timing does not matter since payment/deposit = 0.

Now click the Interest Rate button.

The annual percentage rate required would be 12.246%. See the screen snapshot of this calculation below:

Example #2: What annual percentage rate would be required on an investment with an initial balance of $25,000 and monthly deposits of $500 each month thereafter in order for it to grow to $75,000 in 5 years? Interest is compounded monthly.

Enter the following values in the input fields:
Present Value = 25,000
Future Value = 75,000
Payment/Deposit = 500
Periods = 60 (i.e. 5 x 12)
Periods/Year = 12
Set Payment/Deposit Timing for End.

Now click the Interest Rate button.

The annual percentage rate required would be 8.359%. See the screen snapshot of this calculation below:

Examples

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