Manuals/calci/RATE

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

• where, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NumberOfPayments} represents total number of payment periods
• $Payment$ represents the payment made for each period
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle PV} represents the remaining value of payment to be done
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} represents the balance value to attain after last payment is made
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} represents the payments due
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Guess} 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.
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Payment} includes principal value and the interest amount. If omitted, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} is required.
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} , Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} and Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Guess} are optional.
• If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} is omitted, Calci assumes it to be zero(0).
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} 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 $Guess$ 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.

Related Videos

RATE

See Also

• INTRATE

References

• Interest Rate Derivative

• List of Main Z Functions

• Z3 home