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Rate

Returns the compound interest rate per period required for an investment to grow from present to future value in a given period.

Note:

Interest rate calculation methods differ from country to country. This function calculates an interest rate based on U.S. interest rate standards.

Syntax

Rate(n1, n2, n3)

Parameters

 

Parameter	Description
n1	A numeric value or expression representing the future value of the investment.
n2	A numeric value or expression representing the present value of the investment.
n3	A numeric value or expression representing the total number of investment periods.

The function returns an error if any parameter is negative or 0. If any parameter is null, the function returns null.

Note:

FormCalc follows the IEEE-754 international standard when handling floating point numeric values. For more information, see “Number literals”.

Examples

The following expressions are examples of using the Rate function:

 

Expression	Returns
Rate(12000, 8000, 5)	0.0844717712 (or 8.45%), which is the interest rate per period needed for an $8000 present value to grow to $12,000 in five periods.
Rate(10000, 0.25 * 5000, 4 * 12)	0.04427378243 (or 4.43%), which is the interest rate per month needed for the present value to grow to $10,000 in four years.
Rate(Target_Value, Pres_Value[*], Term * 12)	This example uses variables in place of actual numeric values or expressions.

Rate