InterestRate

Syntax

InterestRate(NPeriods, Payment, PresentValue, FutureValue, PaymentTime)

Summary

InterestRate calculates the interest rate required in order for an investment of PresentValue, with periodic payments of Payment, to be worth FutureValue in NPeriods compounding periods. If NPeriods represents years, an annual interest rate results; if NPeriods represents months, a monthly interest rate results, and so on.

Parameters

• NPeriods is the number of periods of the loan.

• Payment is the periodic payment.

• PresentValue is the initial investment.

• FutureValue is the value the investment will reach after NPeriods.

• PaymentTime is zero or one. It indicates whether the cash flows occurs at the beginning (0) or at the end of the period (1).

Credit

This function is based on the same named function in the Delphi programming language.