The RATE function is one of the financial functions. It is used to calculate the interest rate for an investment based on a constant payment schedule.
The RATE function syntax is:
RATE(nper, pmt, pv [, [[fv] [,[[type] [,[guess]]]]]])
nper is a number of payments.
pmt is a payment amount.
pv is a present value of the payments.
fv is a future value (i.e. a cash balance remaining after the last payment is made). It is an optional argument. If it is omitted, the function will assume fv to be 0.
type is a period when the payments are due. It is an optional argument. If it is set to 0 or omitted, the function will assume the payments to be due at the end of the period. If type is set to 1, the payments are due at the beginning of the period.
guess is an estimate at what the rate will be. It is an optional argument. If it is omitted, the function will assume guess to be 10%.
Note: cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers. Units for guess and nper must be consistent: use N%/12 for guess and N*12 for nper in case of monthly payments, N%/4 for guess and N*4 for nper in case of quarterly payments, N% for guess and N for nper in case of annual payments.
The numeric values can be entered manually or included into the cell you make reference to.
To apply the RATE function,
The result will be displayed in the selected cell.
Please note that AVS4YOU programs do not allow you to copy protected material. You may use this software in copying material in which you own the copyright or have obtained permission to copy from the copyright owner.
AVS4YOU is a registered trademark of Online Media Technologies, Ltd., UK. Intel and Core 2 Duo are registered trademarks of Intel Corporation. AMD and Athlon X2 are registered trademarks of Advanced Micro Devices, Inc. Windows 10/8.1/8/7/XP/2003/Vista are registered trademarks of Microsoft Corporation. All other trademarks are the property of their respective owners.