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Interest rate required for a capital to reach a given future value when placed for a duration of N years formula

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 Description of the Interest rate required for a capital to reach a given future value when placed for a duration of N years formula

Formula allowing the calculation of the interest rate at which a given capital has to be placed for a duration of N in order to reach a future value of KN

  Formula

\[ i=100 \times \left( \left( \frac{K_{N}}{K_{0}}\right) ^{\frac {1}{N}}-1 \right) \ \]

 Symbols

\(K_{N}\ \)       
Future value of the capital
\(K_{0}\ \)       
Present value of the capital
\(N\ \)       
Number of periods (years)