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Carl Feynman
Carl Feynman
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After some simple algebra, this is equivalent to the calculation of "internal rate of return" in finance, on which there is a large literature and many implementations (e.g. in Microsoft Excel).

In general, this can only be solved numerically, by a nonlinear root-finding algorithm. The function you're searching for the root of is monotonicbounded and smooth, so there's no problem of convergence. I recently implemented this using Brent's method, but bisection or the secant method work almost as well and are easier to implement.

After some simple algebra, this is equivalent to the calculation of "internal rate of return" in finance, on which there is a large literature and many implementations (e.g. in Microsoft Excel).

In general, this can only be solved numerically, by a nonlinear root-finding algorithm. The function you're searching for the root of is monotonic and smooth, so there's no problem of convergence. I recently implemented this using Brent's method, but bisection or the secant method work almost as well and are easier to implement.

After some simple algebra, this is equivalent to the calculation of "internal rate of return" in finance, on which there is a large literature and many implementations (e.g. in Microsoft Excel).

In general, this can only be solved numerically, by a nonlinear root-finding algorithm. The function you're searching for the root of is bounded and smooth, so there's no problem of convergence. I recently implemented this using Brent's method, but bisection or the secant method work almost as well and are easier to implement.

Source Link
Carl Feynman
Carl Feynman
  • 1.1k
  • 7
  • 7

After some simple algebra, this is equivalent to the calculation of "internal rate of return" in finance, on which there is a large literature and many implementations (e.g. in Microsoft Excel).

In general, this can only be solved numerically, by a nonlinear root-finding algorithm. The function you're searching for the root of is monotonic and smooth, so there's no problem of convergence. I recently implemented this using Brent's method, but bisection or the secant method work almost as well and are easier to implement.