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How would I calculate a 1/n power? Example: (1+0.10)(1+0.12)^1/n?

Discussion in 'Financial Planning' started by Ema24, 18th Oct, 2014.

  1. Ema24

    Ema24 Member

    Joined:
    31st Aug, 2011
    Posts:
    14
    Location:
    Melbourne, VIC
    I would specifically like to know what button to press on a financial calculator to be able to get the ^1/n. Thank you in advance for your assistance.
     
    Last edited by a moderator: 18th Oct, 2014
  2. jeromanomic

    jeromanomic Active Member

    Joined:
    20th Jul, 2014
    Posts:
    30
    Location:
    Perth, WA
    if you are talking about calculating compound interest you can manually input it as PV*(1+r)^n you don't need a financial calculator for that...

    If you specifically want to use the financial calculator, or are doing a DCF calculation, then you need to enter each variable separately so:

    put in the PV then press the PV button
    Put in the interest rate, then press r button
    put in the number of periods, and push the n button
    put in the payments press PMT button
    etc etc etc

    then press comp followed by FV and you will get the answer,

    What I think you are referring to is the fact that you need to adjust the interest rate to match the compounding frequency. The calculator won't do this automatically and there is no button for it. You just have to know it