RATE

Interest rate for annuity investment

Description

Calculates an annuity investment's interest rate. This is done based on a constant interest rate and constant-rate periodic payments.

Function signature

RATE(numberofperiods: Number, paymentperperiod: Number, presentvalue: Number, futurevalue: Number, endorbeginning: Boolean, rateguess: Number = 0.1) => Number

Parameter

Description

Number of periods

The total number of payment periods in an annuity

Payment per period

The payment made each period, does not change over the life of the annuity

Present value

The present value — the total amount that a series of future payments is worth now

Future value

Future value left when the final payment has been completed, defaults to 0.

End or beginning

Whether payments are due at the end (false) or beginning (true)

Rate guess

An estimate for what the interest rate will be

Examples

Formula

Return value

RATE(12, -100, 400)

0.22893307

RATE(12, -100, 400, 2)

0.22881153

RATE(12, -100, 400, 2, false)

0.22881153

RATE(12, -100, 400, 2, true)

-0.98039216

RATE(12, -100, 400, 2, true, 0.1)

-0.98039216