Documentation

annurate

Periodic interest rate of annuity

Syntax

Rate = annurate(NumPeriods, Payment, PresentValue, FutureValue,
Due)

Arguments

NumPeriods

Number of payment periods.

Payment

Payment per period.

PresentValue

Present value of the loan or annuity.

FutureValue

(Optional) Future value of the loan or annuity. Default = 0.

Due

(Optional) When payments are due: 0 = end of period (default), or 1 = beginning of period.

Description

Rate = annurate(NumPeriods, Payment, PresentValue, FutureValue, Due) returns the periodic interest rate paid on a loan or annuity.

Examples

expand all

Calculate the Periodic Interest Rate Paid on a Loan or Annuity

This example shows how to find the periodic interest rate of a four-year, $5000 loan with a $130 monthly payment made at the end of each month.

Rate = annurate(4*12, 130, 5000, 0, 0)
Rate =

    0.0094

Rate multiplied by 12 gives an annual interest rate of 11.32% on the loan.

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