How do I Calculate Interest Rates With a Financial Calculator?

Financial calculators can save you the hassle of working through a compounded interest formula. These calculators have the formula programmed and only need the variables of the equation to calculate the interest rate of an investment. Financial calculators can solve for any variable in the equation, as long as you provide five of the six variables necessary. To calculate interest rate, you will need to know the present value (original amount invested), number of periods, the future value (amount after period of time invested), the amount of periods per year and the periodic payment.

Things You'll Need

• Financial calculator

Instructions

1. Turn on the calculator by pressing the power button, then press the right hand side of the navigator with your thumb.

2. Press "Edit," then "Clear" to erase any previous data entered into the calculator.

3. Enter the number of periods, periods per year, present value, future value and period payments into their respective categories.

4. Press "Edit" to get to the calculation mode, then press "Solve." The calculator will display the interest rate of your investment.

References

• Docstoc: Directions on How To Use Financial Calculator