Solve for the unknown
Solve for the unknown is an interactive experiment in Interest & Savings, a free simulation from StudyFi Lab that runs right in your browser.
The formula Gₙ = G₀ · rⁿ links four quantities: know three and you can work out the fourth. The principal is G₀ = Gₙ / rⁿ, the time needs a logarithm, n = ln(Gₙ / G₀) / ln r, and the rate needs the n-th root, r = ⁿ√(Gₙ / G₀). The number of periods is n = m · t, with m compounding periods per year; days convert with a 365-day year.
Try this: Pick t as the unknown and set Gₙ to one and a half times the principal at 3 % p.a. How long does it take with annual and with monthly compounding?
Frequently asked questions
What does the “Solve for the unknown” experiment show?
The formula Gₙ = G₀ · rⁿ links four quantities: know three and you can work out the fourth. The principal is G₀ = Gₙ / rⁿ, the time needs a logarithm, n = ln(Gₙ / G₀) / ln r, and the rate needs the n-th root, r = ⁿ√(Gₙ / G₀). The number of periods is n = m · t, with m compounding periods per year; days convert with a 365-day year.
How do I try “Solve for the unknown”?
Pick t as the unknown and set Gₙ to one and a half times the principal at 3 % p.a. How long does it take with annual and with monthly compounding?
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