RATE(FV, PV, N)

 

Description

This function returns the interest rate required to go from present value PV to future value FV in N compounding periods.  The formula used is:

 

 

Parameters

 

FV

Future value of the investment.

 

PV

Present value of the investment.

 

N

Number of periods.

 

Examples

 

RATE(5000, 3000, 10) = .05

 

RATE(H8, G8, B6) = .149

Where B6 = 5, G8 = 5,000.00, and H8 = 10,000.00.

 

RATE(8700, -1000, 3) = #Error

"PV" and "FV" must have the same sign.