Difference between revisions of "Manuals/calci/RATE"

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

Revision as of 20:27, 3 January 2014

RATE(NoOfPeriods, Payment, PresentValue, FutureValue, Type, Guess)

  • where, represents total number of payment periods
  • represents the payment made for each period
  • represents the remaining value of payment to be done
  • represents the balance value to attain after last payment is made
  • represents the payments due
  • is the guess value for what rate will be

INTRATE() calculates the interest rate per period for a year.

Description

RATE(NoOfPeriods, Payment, PresentValue, 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.

See Also

References

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