RATE

Basic Overview

Description	Returns the interest rate per period of an annuity based on a number of periods, the amount of payments per period, a present value, a future value, a value indicating whether payments are due at the beginning or the end of period (type) and a guess.
Signature	RATE(Nper, Pmt, PV[, FV , Type, Guess])
Parameters	Nper -> Number of periods: the number of payments to be made Pmt -> Payment per period: the amount per period to be paid (Payments/costs should be entered as a negative number e.g. -500) Pv -> Present value: the current value of the annuity. Fv -> [Optional] Future value: the future value remaining after the final payment has been made. If not entered, 'Fv' is set to 0. Type -> [Optional] when the payments are due (1=pmt at beginning of period (Annuity Due), 0=pmt at end of period (Ordinary Annuity)). By default 'Type' is set to 0. Guess → [Optional] A first guess what you think the RATE will be. By default ‘Guess’ is set to 10%.
Notes	Argument 'Pv' is the leading input node. A leading input node is a function argument, for which we assume the levels to be correct. All other input nodes need to have the same dimensionality. Each input node can be a single number Providing all inputs with the same dimensionality results in a noticeable performance improvement Guess and result values are entered/returned as decimal numbers, e.g. 10% = 0.1 Guess - the function calculates the rate via trial and error. To find a result, it has 20 tries. Therefore, providing a guess helps to find a result faster. If no result is found within 20 tries, an error is returned.
Limitations	If the successive results for the rate do not converge, Valsight returns an error. All other inputs must not contain levels that are not in the leading input node 'Pv'. All level values that are in the leading input node 'Pv' , must be in all the other input nodes.

Example

Nper (Number of Periods)	60
Pmt (Payment per Period - Amount)	-100
Pv (Present Value)	5000
Fv (Future Value)	0
Type Payment at Beginning of Period (Annuity Due) = 1 Payment at End of Period (Ordinary Annuity) = 0	0
Guess	0.1
Valsight Formula	RATE(Nper, Pmt, PV, FV , Type, Guess)
Result	0.0062