I'm thinking he may be dealing with something like a trust fund - attempting
to determine what interest rate he needs to achieve with a fixed amount to
permit the annual payout without digging into the principal.

"Stan Brown" wrote:

Sun, 2 Dec 2007 06:59:01 -0800 from ifeoma
:
how do I calculate interest rate for infinite but periodic
payments? say I received $1.2M but have to pay $60k every year, at
what interest rate is this possible?

If they are *literally* infinite, it means you never pay down the
loan, so every dollar is going into interest. (This would be quite
unusual.)

Your interest amount is then payment = rate * principal, and your
interest rate is rate = payment / principal.

--
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com/
"If there's one thing I know, it's men. I ought to: it's
been my life work." -- Marie Dressler, in /Dinner at Eight/