This function returns the interest rate per period of an annuity.
RATE(nper,pmt,pval,fval,type,guess)
This function has these arguments:
| Argument | Description |
|---|---|
| nper | Total number of payment periods in an annuity |
| pmt | Value representing the payment made each period |
| pval | Present value, worth now |
| fval | Future value, cash value after the last payment |
| type | [Optional] Indicates when payments are due; at the end (0) or beginning (1) of the period; if omitted, the calculation uses the end (0) |
| guess | Guess for what the rate will be (optional) |
Guess is assumed to be 10% if omitted.
Accepts numeric data for all arguments. Returns numeric data.
RATE(A1,B2,C3,C4,1)
RATE(360, -600, 80000) gives the result 0.686%