How to use interpolation method to calculate interest rate Given the coefficient of present value (or final value) of annuity and the number of periods n, it is a little unclear when calculating the interest rate according to the interpolation formula Example: a company borrows 20000 yuan at the beginning of the first year, and repays 4000 yuan at the end of each year, which is paid off for nine consecutive years? (P/A,i,9)=P/A=20000/4000=5 When I = 12%, (P / A, 12%, 9) = 5.3282; I = 14%, (P / A, 14%, 9) = 4.9464 So I = 12% + (5.3282-5) / 5.3282-4.9464) * (14% - 12%) = 13.72% The formula I = I1 + (b-b1) / (b2-b1) * (i2-i1), why not I = 12% + (5-5.3282) / 4.9464-5.3282) * (12% - 14%) How to define I1 and I2 in the formula? Which of the 12% and 14% in the above example is I1 and which is I2?
Just say I'm afraid I can't make it clear, try it! You first draw a line segment, and then add a point in the middle. At this time, there are three points. You write 5.3282, 5, 4.9464 on the three points above the line, 12%, X%, 14% on the corresponding points below the line (note that the corresponding order is correct), and then take up the total line segment by one paragraph