Annualised interest rate

Is it possible to work out an annulised interest rate of a savings plan
given that I have the following data:

1. annual premium
2. number of years (i.e. premiums)
3. anticipated future value

I know how to find out the Average Growth Rate of an investment (MS KB
article 123198) but this assumes that a lump sum investment has been made at
the start of the period. How can I calcualte what the anticpated growth on
an investment plan with annual premiums is?

Linda Adams

Check out the RATE() function in XL Help:

For instance, if you have an annual premium of $100 for 4 years, with an
anticipated future value of $450, you could use

=RATE(4,-100,0,450,1) ===> 4.77%

Using the 1 as the fourth argument assumes that you pay in advance, and
that the FV is at the *end* of the 4th year.

In article <#[email protected]>,
"Linda Adams" <[email protected]> wrote:

> Is it possible to work out an annulised interest rate of a savings plan
> given that I have the following data:
>
> 1. annual premium
> 2. number of years (i.e. premiums)
> 3. anticipated future value
>
> I know how to find out the Average Growth Rate of an investment (MS KB
> article 123198) but this assumes that a lump sum investment has been made at
> the start of the period. How can I calcualte what the anticpated growth on
> an investment plan with annual premiums is?

Many thanks - works perfectly. I felt sure the answer was staring me in the
face!

Linda Adams
"JE McGimpsey" <[email protected]> wrote in message
news:[email protected]...
> Check out the RATE() function in XL Help:
>
> For instance, if you have an annual premium of $100 for 4 years, with an
> anticipated future value of $450, you could use
>
> =RATE(4,-100,0,450,1) ===> 4.77%
>
> Using the 1 as the fourth argument assumes that you pay in advance, and
> that the FV is at the *end* of the 4th year.
>
> In article <#[email protected]>,
> "Linda Adams" <[email protected]> wrote:
>
> > Is it possible to work out an annulised interest rate of a savings plan
> > given that I have the following data:
> >
> > 1. annual premium
> > 2. number of years (i.e. premiums)
> > 3. anticipated future value
> >
> > I know how to find out the Average Growth Rate of an investment (MS KB
> > article 123198) but this assumes that a lump sum investment has been
made at
> > the start of the period. How can I calcualte what the anticpated growth
on
> > an investment plan with annual premiums is?