annurate

Periodic interest rate of annuity

Syntax

Rate = annurate(NumPeriods,Payment,PresentValue)

Rate = annurate(___,FutureValue,Due)

Description

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

Rate = annurate(___,FutureValue,Due) specifies options using one or more optional arguments in addition to the input arguments in the previous syntax.

Examples

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.

Input Arguments

NumPeriods — Number of payment periods

scalar numeric

Number of payment periods, specified as a scalar numeric.

Data Types: double

Payment — Payment per period

scalar numeric

Payment per period, specified as a scalar numeric.

Data Types: double

PresentValue — Present value of the loan

scalar numeric

Present value of the loan, specified as a scalar numeric.

Data Types: double

FutureValue — Future value of the loan

0 (default) | scalar numeric

(Optional) Future value of the loan, specified as a scalar numeric.

Data Types: double

Due — When payments are due

0 (end of period) (default) | scalar integer with value of 0 or 1

(Optional) When payments are due, specified as a scalar integer with value of 0 (end of period) or 1 (beginning of period).

Data Types: double

Output Arguments

Rate — Periodic interest-rate paid of a loan or annuity

scalar numeric decimal

Periodic interest-rate paid of a loan or annuity, returned as a scalar numeric decimal.

Version History

Introduced before R2006a