RATE

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 the period (type) and a guess.

Use when the number of periods and payments are known and you want to solve for the implied interest rate.

`RATE('Nper', 'Pmt', 'Pv' [, 'Fv' [, "Type" [, Guess]]])`

• 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, for example -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 = payment at beginning of period / annuity due, 0 = payment at end of period / ordinary annuity). By default, "Type" is set to 0.

• Guess (optional): A first guess for what the rate will be. By default, Guess is set to 10%.

• 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 and returned as decimal numbers, for example 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.

• 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.