Discount rate - what to use?

How do you write a formula that calculates the Annual Percentage Interest Cost of the Discount not taken for any set of data.

Annual Percentage Interest Cost of Discount Not Taken

Prompt Payment Discount Amount 2.5%

Invoice has to be paid within how many days to qualify for the discount 10
Net amount of invoice to be paid within how many days 30

Annual Percentage Interest Cost of Discount Not Taken

Please help

Grahame

You want to answer the question: If I invest $97.50, what interest rate gets me
to $100.00 in 20 days? The rate function will do this for you:

=rate(20/365,0,-97.50,100.00)

The answer is 58.73%.

--
Regards,
Fred


"tiger1969" <[email protected]> wrote in
message news:[email protected]...
>
> How do you write a formula that calculates the Annual Percentage
> Interest Cost of the Discount not taken for any set of data.
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Prompt Payment Discount Amount 2.5%
>
> Invoice has to be paid within how many days to qualify for the discount
> 10
> Net amount of invoice to be paid within how many days 30
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Please help
>
> Grahame
>
>
> --
> tiger1969
> ------------------------------------------------------------------------
> tiger1969's Profile:
> http://www.excelforum.com/member.php...o&userid=26435
> View this thread: http://www.excelforum.com/showthread...hreadid=402069
>

You want to answer the question: If I invest $97.50, what interest rate gets me
to $100.00 in 20 days? The rate function will do this for you:

=rate(20/365,0,-97.50,100.00)

The answer is 58.73%.

--
Regards,
Fred


"tiger1969" <[email protected]> wrote in
message news:[email protected]...
>
> How do you write a formula that calculates the Annual Percentage
> Interest Cost of the Discount not taken for any set of data.
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Prompt Payment Discount Amount 2.5%
>
> Invoice has to be paid within how many days to qualify for the discount
> 10
> Net amount of invoice to be paid within how many days 30
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Please help
>
> Grahame
>
>
> --
> tiger1969
> ------------------------------------------------------------------------
> tiger1969's Profile:
> http://www.excelforum.com/member.php...o&userid=26435
> View this thread: http://www.excelforum.com/showthread...hreadid=402069
>

You want to answer the question: If I invest $97.50, what interest rate gets me
to $100.00 in 20 days? The rate function will do this for you:

=rate(20/365,0,-97.50,100.00)

The answer is 58.73%.

--
Regards,
Fred


"tiger1969" <[email protected]> wrote in
message news:[email protected]...
>
> How do you write a formula that calculates the Annual Percentage
> Interest Cost of the Discount not taken for any set of data.
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Prompt Payment Discount Amount 2.5%
>
> Invoice has to be paid within how many days to qualify for the discount
> 10
> Net amount of invoice to be paid within how many days 30
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Please help
>
> Grahame
>
>
> --
> tiger1969
> ------------------------------------------------------------------------
> tiger1969's Profile:
> http://www.excelforum.com/member.php...o&userid=26435
> View this thread: http://www.excelforum.com/showthread...hreadid=402069
>

You want to answer the question: If I invest $97.50, what interest rate gets me
to $100.00 in 20 days? The rate function will do this for you:

=rate(20/365,0,-97.50,100.00)

The answer is 58.73%.

--
Regards,
Fred


"tiger1969" <[email protected]> wrote in
message news:[email protected]...
>
> How do you write a formula that calculates the Annual Percentage
> Interest Cost of the Discount not taken for any set of data.
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Prompt Payment Discount Amount 2.5%
>
> Invoice has to be paid within how many days to qualify for the discount
> 10
> Net amount of invoice to be paid within how many days 30
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Please help
>
> Grahame
>
>
> --
> tiger1969
> ------------------------------------------------------------------------
> tiger1969's Profile:
> http://www.excelforum.com/member.php...o&userid=26435
> View this thread: http://www.excelforum.com/showthread...hreadid=402069
>

You want to answer the question: If I invest $97.50, what interest rate gets me
to $100.00 in 20 days? The rate function will do this for you:

=rate(20/365,0,-97.50,100.00)

The answer is 58.73%.

--
Regards,
Fred


"tiger1969" <[email protected]> wrote in
message news:[email protected]...
>
> How do you write a formula that calculates the Annual Percentage
> Interest Cost of the Discount not taken for any set of data.
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Prompt Payment Discount Amount 2.5%
>
> Invoice has to be paid within how many days to qualify for the discount
> 10
> Net amount of invoice to be paid within how many days 30
>
> Annual Percentage Interest Cost of Discount Not Taken
>
> Please help
>
> Grahame
>
>
> --
> tiger1969
> ------------------------------------------------------------------------
> tiger1969's Profile:
> http://www.excelforum.com/member.php...o&userid=26435
> View this thread: http://www.excelforum.com/showthread...hreadid=402069
>