present value interest factor annuity formula

Question

1030 = 40 [1-(1+r)^-40/r] + 1000 [1-(1+r)^-40/r]

solve for r

Answer 1

Hello, thank you for taking the time to post your question!

Is it possible that there is a typo in your underlying equation?

It looks like the parameters for that time value of money equation are

PV = 1030

C = 40

n = 40

FV = 1000

If you solve that for the value of r it ends up being -4.03% …. Typically the rate should be positive so I think there might be a typo in your original statement