Description Returns the interest rate per period of an annuity, given a series of constant cash payments made over a regular payment period.
Syntax RATE ( nper, pmt, pv [, fv] [, type] [, guess] )
| Argument | Description |
|---|---|
| nper | The number of periods in the annuity. |
| pmt | The fixed payment made each period. Generally, pmt includes only principle and interest, not taxes or other fees. |
| pv | The present value of the annuity. |
| [fv] | Optional. The future value, or the amount the annuity will be worth. If this argument is omitted, 0 is used. |
| [type] | Optional. Indicates when payments are due. Use 0 if payments are due at the end of the period or 1 if payments are due at the beginning of the period. If this argument is omitted, 0 is used. |
| [guess] | Optional. Your estimate of the interest rate. If this argument is omitted, 0.1 (10 percent) is used. |
Remarks RATE is calculated iteratively, cycling through the calculation until the result is accurate to .00001 percent. If the result cannot be found after 20 iterations, #NUM! is returned. When this occurs, supply a different value for guess.
Example The following example returns the monthly interest rate of .0067; the annual interest rate (.0067 multiplied by 12) is 8 percent:
See Also FV, CUMIPMT, CUMPRINC, IPMT, NPER, PMT, PPMT, PV
