Name
RATE
Synopsis
Use
RATE to determine the interest
rate of an annuity for a specific period. RATE uses an iteration
method to determine the interest rate for the annuity. If a value is
not specified for the Guess
argument, it
starts with a value of 0.1 and performs 20 attempts to determine the
correct interest rate.
To Calculate
=RATE(Nper
,Pmt
,PV
,FV
,Type
,Guess
)
You must specify a value for either the
Pmt
or FV
arguments, but you do not have to specify both. The
FV
, Type
and
Guess
arguments are optional, but the
Nper
and PV
arguments must have values.
-
Pmt
Indicates payment that is made for each period. For example, if you are making monthly payments of $355, that is the value of the
Pmt
argument. ThePmt
argument normally includes only principal and interest. If you do not specify a value for thePmt
argument you must specify a value for theFV
argument.-
PV
Indicates the present value of the annuity. The present value indicates the value of the annuity including the amounts of the future payments.
-
FV
Indicates the future value of the annuity. If you do not specify a value for the
FV
argument it is assumed to have a value of 0.-
Guess
This is an optional argument that can be used to indicate your guess as to the interest rate for the annuity. You need to base your guess on the type of units specified for the
Nper
argument. For example, if you are making monthly payments on the annuity, the Guess argument needs to indicate the amount of interest charged each month. For example, ...
Get Excel 2000 in a Nutshell now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.