Fixed-Point Iteration: Circular Interest, Convergence and Divergence
This lesson is part of the course
In this lesson
You resolve a revolver's interest circularity by iteration, then rewrite one break-even equation two ways and see one rearrangement converge and the other run off to the other root.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- Bisection with Error Bounds: Guaranteed Accuracy for a Break-Even Locked
- Newton-Raphson with a Numerical Derivative: the Rate Inside a Lease Locked
- The Secant Method: Bond Yield Without a Derivative Locked
- Fixed-Point Iteration: Circular Interest, Convergence and Divergence Locked
- Comparing Convergence Speed: Bisection, Newton, Secant & Fixed Point Locked
- IRR as the Root of NPV: Newton vs Excel's IRR Locked
- Trapezoid vs Simpson: Error vs Step Size and the Observed Order Locked
- Stopping Criteria and Floating-Point Limits Locked