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mathematical formula of rate

  1. #1
    mich
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    mathematical formula of rate

    what is the mathematical formula of RATE(nper,pmt,pv,fv,type,guess);
    i have the pmt, the number of payments, and the present value i need to
    calculate the rate on paper



  2. #2
    Valued Forum Contributor
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    use the function RATE to calculate interest rate for constant payment loan

  3. #3
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    it is detailed in help, PV worksheet function

  4. #4
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    Hi Robert

    Have a look at this web page for additional info
    http://techonthenet.com/excel//formulas/rate.php

  5. #5
    mich
    Guest

    Re: mathematical formula of rate

    hello robert111,
    thanks for the information it was helpfull, but i need to calculate the rate
    in this formula:
    pmt= pv * i / 1 - (1/(1+i)^n)
    where i=rate, n=period, pmt=annuity, pv=present value
    i=?

    "robert111" wrote:

    >
    > it is detailed in help, PV worksheet function
    >
    >
    > --
    > robert111
    > ------------------------------------------------------------------------
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  6. #6
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    i = (PMT*(1-(1+i)^n))/pv

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