RATE

Calculates the interest rate of an annuity investment based on constant-amount periodic payments and the assumption of a constant interest rate.

Parameter List

Syntax
RATE(number_of_periodspayment_per_periodpresent_value
[future_value]
[end_or_beginning]
[rate_guess]
)
number_of_periods

The number of payments to be made. For example: 12.

payment_per_period

The amount per period to be paid. For example: 100. If payment_per_period is omitted, you must include the future_value argument.

present_value

The current value of the annuity. For example: 400.

[optional] future_value

The current value of the annuity. For example: 400.

[optional] end_or_beginning

Whether the payments are due at the end (0) or beginning (1) of each period. For example: 0 or 1. The default type is 0.

[optional] rate_guess

An estimate for what the interest rate will be.Learn more. For example: 1%. The default value is 0.1.

Examples

RATE(36, -300, 100000, , , ) returns 0.42%