Question
how do you take the fourth root? Please refer to the example below?
Using Amount = Present Value(1+i)^n
we do not know i.
249=183(1+i)^4
1.3606557=(1+i)^4
take the fourth root
1.0800331=1+i
giving you i=0.0080031
so the annual rate is 8%
Using Amount = Present Value(1+i)^n
we do not know i.
249=183(1+i)^4
1.3606557=(1+i)^4
take the fourth root
1.0800331=1+i
giving you i=0.0080031
so the annual rate is 8%