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Rate Function

## Class

Microsoft.VisualBasic.Financial

## Syntax

`Rate(`nper`, `pmt`, `pv`[, `fv`[, `due`[, `guess`]]])`
`nper `(required; Double)

The total number of periods in the annuity.

`pmt `(required; Double)

The payment amount per period.

`pv `(required; Double)

The present value of the payments or future receipts.

`fv `(optional; Double)

The future value or cash balance after the final payment. If omitted, its value defaults to 0.

`due `(optional; `DueDate` enumeration)

A flag indicating whether payments are due at the beginning of the payment period (a value of `DueDate.BegOfPeriod`) or at the end of the payment period (a value of `DueDate.EndOfPeriod`, the default).

`guess `(optional; 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 0, reflecting that ...

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