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Returns the interest rate for each period of the annuity. The function RATE is calculated iteratively and may have no or multiple solutions. If after 20 iterations of calculation,
The two consecutive results of function RATE do not converge to 0.0000001, and function RATE will return the error value #NUM!.
Syntax
RATE(nper,pmt,pv,fv,type,guess)
For a detailed description of the parameters in function RATE, see functionPV.
nper is the total investment period, that is, the item The total number of payment periods for the investment.
pmt is the payment amount of each period, its value Remains constant throughout the investment period. Typically pmt includes principal and interest but not other fees or taxes. if
If pmt is omitted, the fv parameter must be included.
pv is the current value, that is, from the item The amount of money that has been accounted for when an investment begins, or the cumulative sum of the current value of a series of future payments, also called principal.
fv is the future value, or at the last time The cash balance expected after payment. If fv is omitted, its value is assumed to be zero, which is the future value of a loan
is zero.
type number 0 or 1 to specify Whether the payment of each period is at the beginning or end of the period.
guess is the expected interest rate.
• If the expected interest rate is omitted, the value is assumed to be 10%.
• If the function RATE does not converge, change the value of guess. Normally the function RATE converges when guess lies between 0 and 1.
Description
Confirm that the specified guess and nper units are consistent for a 6-year loan with an annual interest rate of 12%
If you pay monthly, guess is 12%/12, nper is 6*12;
If paid annually, guess is 12% and nper is 6.
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