Rate Command

Rate( <Number of Periods>, <Payment>, <Present Value>, <Future Value (optional)>, <Type (optional)>, <Guess (optional)> ):: Returns the interest rate per period of an annuity.

<Number of Periods> Total number of payments for the loan.
<Payment> The amount paid in each period.
<Present Value> Total amount that a series of future payments is worth now.
<Future Value (optional)> A cash balance you want to attain after the last payment. If you do not enter a future value, it is assumed to be 0.
<Type (optional)> Indicates when payments are due. If you do not enter a value or you enter 0 the payment is due at the end of the period. If you enter 1 it is due at the beginning of the period.
<Guess (optional)> Your guess for what the rate will be.

Rate(5*12, -300, 10000) yields a monthly rate of 0.02 (2%).

If you make monthly payments on a five-year loan use 5*12 for <Number of Periods>.

For all arguments, cash paid out is represented by negative numbers and cash received by positive numbers..

See also Payment, Periods, Present Value and Future Value commands.