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
RATE() 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.