rate Function
Description:
The fixed interest rate for a periodic investment to reach a future value.
Returns the solution for
r
in the equation: r=0: pv + c.n + fv = 0
r>0: pv.( 1 + r )**n + c.( 1 + r.b ).( ( 1 + r )**n - 1 )/r + fv = 0
where pv
present value
, fv future value
, r interest rate
, n number of investment periods
, c payment per period
, b=true interest payable at the beginning of each period
, b=false interest payable at the end of each period
.Returns:
Number
Parameters:
Parameter | Data Type | Description |
|---|---|---|
1 | Whole Number | The number of investment periods |
2 | Number | The amount invested in each period |
3 | Number | The present value of the investment |
4 | Number | The future value of the investment |
5 | Boolean | Interest payable at the beginning of each period? |
Example:
When using functions inside a field, remember the field brackets:
{rate(InvestmentPeriods, AmountInvested, CurrentValue, FutureValue, InterestPayable)}
Expression | Result |
|---|---|
rate( 12, -1000, 0, 24133.13, false ) | 0.12 |
Related Content
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Financial Functions
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