Frate()

Description:

The function equals the Excel RATE function.

Syntax:

Frate(nper,pmt,pv,fv,guess)

Note:

The function calculates the interest rate required to pay an investment, including both the reimbursement rate of the constant periodic payment and the rate of return of the one-off payment.

Parameters:

nper

The number of periods over which the investment or loan is to be paid

pmt

The payment amount per period, including the principal and the interest

pv

The present value of the loan /investment, known as the principal. That is the money that already exist when the payment for an investment (or a loan) begins, or the total amount of present values of a series of future payments

fv

The future value of the loan/investment, or the cash balance you hope to achieve after the final payment. If omitted, it will take on the default value of zero

guess

An estimated interest rate. If omitted, it will take on the assumed value of 10%. Both guess and nper must use the same unit.

Options:

@t

Indicating the payment type, it corresponds to Excel type parameter. If using the option, choose type 1; if not, choose type 0.

Example:

Frate(12*6, -2200, 100000)

0.013798002390137705