Difference between revisions of "Manuals/calci/RATE"

Latest revision as of 16:23, 22 August 2018

RATE (NumberOfPayments,Payment,PV,FutureValue,Type,Guess)

where, $NumberOfPayments$ represents total number of payment periods
$Payment$ represents the payment made for each period
$PV$ represents the remaining value of payment to be done
$FutureValue$ represents the balance value to attain after last payment is made
$Type$ represents the payments due
is the guess value for what rate will be
- RATE() returns the interest rate per period of an annuity.

Description

RATE (NumberOfPayments,Payment,PV,FutureValue,Type,Guess)

RATE is calculated by iteration and can have zero or more solutions.
includes principal value and the interest amount. If omitted, is required.
, and are optional.
If is omitted, Calci assumes it to be zero(0).
can be represented as '1' or '0'.

Type	Payments Due
0 or omitted	At the end of the period
1	At the beginning of the period

If is omitted, Calci assumes it to be 10%.

Examples

Consider the following example that shows the use of RATE function:

2	8
-50	-100
2000	50000
0	0
1	0
12%

=RATE(A1*12,A2,A3,A4,A5,A6) displays monthly rate of loan -4.01% as a result.
=RATE(B1*12,B2,B3,B4,B5) displays monthly rate of loan -2.77% as a result.
=RATE(B1*12,B2,B3,B4,B5)*12 displays annual rate of loan -0.33263515005213806 as a result.

References

Interest Rate Derivative

List of Main Z Functions

Z3 home

@@ Line 1: / Line 1: @@
-<div id="6SpaceContent" class="zcontent" align="left">
+<div style="font-size:30px">'''RATE (NumberOfPayments,Payment,PV,FutureValue,Type,Guess)'''</div><br/>
-'''RATE'''(NoOfPeriod, Payments, PresentValue, FutureValue, Type, Guess)
+*where, <math>NumberOfPayments</math> represents total number of payment periods
+*<math>Payment</math> represents the payment made for each period
+*<math>PV</math> represents the remaining value of payment to be done
+*<math>FutureValue</math> represents the balance value to attain after last payment is made
+*<math>Type</math> represents the payments due
+*<math>Guess</math> is the guess value for what rate will be
+**RATE() returns the interest rate per period of an annuity.
-where,
+== Description ==
-'''NoOfPeriod''' - represents the total number of payment periods.
+RATE (NumberOfPayments,Payment,PV,FutureValue,Type,Guess)
-'''Payments''' - represents the payment made each period.
+*RATE is calculated by iteration and can have zero or more solutions.
+*<math>Payment</math> includes principal value and the interest amount. If omitted, <math>FutureValue</math> is required.
-'''PresentValue''' - represents the present value.
+*<math>FutureValue</math>, <math>Type</math> and <math>Guess</math> are optional.
+*If <math>FutureValue</math> is omitted, Calci assumes it to be zero(0).
-'''FutureValue''' - represents the future value.
+*<math>Type</math> can be represented as '1' or '0'.
+{| class="wikitable"
-If omitted then considered as 0.
+|-
+! Type !! Payments Due
-'''Type''' - represents the payments due.
+|-
+| 0 or omitted || At the end of the period
-'''Type               Payments due'''
+|-
+| 1 || At the beginning of the period
-or omitted    end of the period                 1                     beginning of the period
+|}
+*If <math>Guess</math> is omitted, Calci assumes it to be 10%.
-'''Guess''' - represents the guess for rate will be.
-If omit, it considered as 10%.
-</div>
-----
-<div id="1SpaceContent" class="zcontent" align="left">
-It returns the interest rate per period for a year.
+== Examples ==
-</div>
+Consider the following example that shows the use of RATE function:
-----
-<div id="7SpaceContent" class="zcontent" align="left">
-If the successive results of RATE do not converge to within 0.0000001 after 20 iterations, RATE returns the #ERROR.
-</div>
-----
-<div id="12SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="left">
-RATE
-</div></div>
-----
-<div id="8SpaceContent" class="zcontent" align="left">
-Lets see an example in (Column2, Row1)
-<nowiki>=RATE(R1C1, R2C1, R3C1, 0, 1, "10%")</nowiki>
-RATE returns -0.040126.
-Consider an another example
-<nowiki>=RATE(8,-100,50000,0,5,0.01)</nowiki>
-It returns #ERROR(Type=5).
-</div>
-----
-<div id="10SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Syntax </div><div class="ZEditBox"><center></center></div></div>
-----
-<div id="4SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Remarks </div></div>
-----
-<div id="3SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Examples </div></div>
-----
-<div id="11SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Description </div></div>
-----
 <div id="2SpaceContent" class="zcontent" align="left">
 {| id="TABLE3" class="SpreadSheet blue"
 |- class="even"
+| class="sshl_f" | 2
+| class=" " |8
 | class=" " |
-| Column1
-| Column2
-| Column3
-| Column4
 |- class="odd"
-| class=" " | Row1
+| class="sshl_f" | -50
-| class="                                     " | 2
+| class=" " |-100
-| class="sshl_f" | -0.040126
-| class=" " |
 | class=" " |
 |- class="even"
-| class="  " | Row2
+| class="sshl_f" | 2000
-| class=" " | -50
+| class=" " |50000
-| class="       SelectTD ChangeBGColor SelectTD" |
-| class=" " |
 | class=" " |
 |- class="odd"
-| Row3
+| class="sshl_f" | 0
-| class=" " | 2000
+| class=" " |0
-| class="   " |
-| class=" " |
 | class=" " |
 |- class="even"
-| Row4
+| class="sshl_f" | 1
-| class="    " |
+| class=" " |0
-| class="   " |
-| class=" " |
 | class=" " |
 |- class="odd"
-| class=" " | Row5
+| class="sshl_f" | 12%
-| class=" " |
-| class=" " |
-| class=" " |
-| class=" " |
-|- class="even"
-| Row6
-| class=" " |
-| class=" " |
 | class=" " |
 | class=" " |
 |}
-<div align="left">[[Image:calci1.gif]]</div></div>
+ =RATE(A1*12,A2,A3,A4,A5,A6) displays monthly rate of loan ''-4.01%'' as a result.
-----
+ =RATE(B1*12,B2,B3,B4,B5) displays monthly rate of loan ''-2.77%'' as a result.
+ =RATE(B1*12,B2,B3,B4,B5)*12 displays annual rate of loan ''-0.33263515005213806'' as a result.
+==Related Videos==
+{{#ev:youtube|GtaoP0skPWc|280|center|RATE}}
+== See Also ==
+*[[Manuals/calci/INTRATE | INTRATE]]
+== References ==
+*[http://en.wikipedia.org/wiki/Interest_rate_derivative Interest Rate Derivative]
+*[[Z_API_Functions | List of Main Z Functions]]
+*[[ Z3 |   Z3 home ]]