| Rate Function |
Named Arguments
Yes
Syntax
Rate(nper, pmt, pv[, fv[, due[, guess]]])
nper
Use: Required
Data Type: Double
The total number of periods in the annuity.
pmt
Use: Required
Data Type: Double
The payment amount per period.
pv
Use: Required
Data Type: Double
The present value of the payments or future receipts.
fv
Use: Optional
Data Type: Variant
The future value or cash balance after the final payment. If omitted, its value defaults to 0.
due
Use: Optional
Data Type: Variant
A flag indicating whether payments are due at the beginning of the payment period (a value of 0, the default) or at the end of the payment period (a value of 1).
guess
Use: Optional
Data Type: Double
An estimate of the value to be returned by the function. If omitted, its value defaults to .1 (10%).
Return Value
A Double representing the interest rate per period.
Description
Calculates the interest rate for an annuity (a loan or an investment) that consists of fixed payments over a known duration.
Rules at a Glance
For pv and fv, cash paid out is expressed as a negative number; cash received is expressed as a positive number.
The function works using iteration. Starting with guess, Rate cycles through the calculation until the result is accurate to within 0.00001 percent. If a result can't be found after 20 tries, the function fails.
Programming Tips and Gotchas
In the case of a loan, pv is the loan amount. In the case of an investment, pv is the beginning balance.
In the case of a loan, fv is typically ...
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