Formulas and Functions Help
- Welcome
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- ACCRINT
- ACCRINTM
- BONDDURATION
- BONDMDURATION
- COUPDAYBS
- COUPDAYS
- COUPDAYSNC
- COUPNUM
- CUMIPMT
- CUMPRINC
- CURRENCY
- CURRENCYCODE
- CURRENCYCONVERT
- CURRENCYH
- DB
- DDB
- DISC
- EFFECT
- FV
- INTRATE
- IPMT
- IRR
- ISPMT
- MIRR
- NOMINAL
- NPER
- NPV
- PMT
- PPMT
- PRICE
- PRICEDISC
- PRICEMAT
- PV
- RATE
- RECEIVED
- SLN
- STOCK
- STOCKH
- SYD
- VDB
- XIRR
- XNPV
- YIELD
- YIELDDISC
- YIELDMAT
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- AVEDEV
- AVERAGE
- AVERAGEA
- AVERAGEIF
- AVERAGEIFS
- BETADIST
- BETAINV
- BINOMDIST
- CHIDIST
- CHIINV
- CHITEST
- CONFIDENCE
- CORREL
- COUNT
- COUNTA
- COUNTBLANK
- COUNTIF
- COUNTIFS
- COVAR
- CRITBINOM
- DEVSQ
- EXPONDIST
- FDIST
- FINV
- FORECAST
- FREQUENCY
- GAMMADIST
- GAMMAINV
- GAMMALN
- GEOMEAN
- HARMEAN
- INTERCEPT
- LARGE
- LINEST
- LOGINV
- LOGNORMDIST
- MAX
- MAXA
- MAXIFS
- MEDIAN
- MIN
- MINA
- MINIFS
- MODE
- NEGBINOMDIST
- NORMDIST
- NORMINV
- NORMSDIST
- NORMSINV
- PERCENTILE
- PERCENTRANK
- PERMUT
- POISSON
- PROB
- QUARTILE
- RANK
- SLOPE
- SMALL
- STANDARDIZE
- STDEV
- STDEVA
- STDEVP
- STDEVPA
- TDIST
- TINV
- TTEST
- VAR
- VARA
- VARP
- VARPA
- WEIBULL
- ZTEST
- Copyright
end (0 or omitted): Payment is treated as being received or made at the end of each period.
beginning (1): Payment is treated as being received or made at the beginning of each period.
estimate: An optional number value specifying the initial estimate for the rate of return. estimate is a number value and is entered as a decimal (for example, 0.08) or with a percent sign (for example, 8%). If omitted, 10% is assumed. If the default value does not result in a solution, initially try a larger positive value. If this does not result in an outcome, try a small negative value. The minimum value allowed is –1.
Example |
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Suppose you are planning for your daughter’s college education. She has just turned 3 and you expect she will begin college in 15 years (num-periods is 15*12). You think you will need to have $150,000 (future-value, which is positive because it will be a cash inflow) set aside in a savings account by the time she reaches college. You can set aside $50,000 today (present-value is -50000 because this is a cash outflow) and add $200 (payment is -200 because this is also a cash outflow) to the account at the beginning of each month. Over the next 15 years, the savings account is expected to earn interest monthly (periodic-rate is 0.045/12). =RATE(15*12, -200, -50000, 150000, 1, 0.1/12) returns approximately 0.376962210924744%, which is per month because num-periods was monthly, or approximately a 4.52% annual rate. Therefore, if the savings account is expected to earn at least this rate over the entire period, it would grow to at least $150,000 over the 15 years. |