RATE

Syntax: RATE(FV, PV, N)

FV = future value of the investment
PV = present value of the investment
N = number of periods

RATE returns the interest rate required to go from present value PV to future value FV in N compounding periods.

The formula used is:

$$\left( \frac{FV}{PV} \right)^\frac{1}{N} - 1$$

Examples:

RATE(5000, 3000, 10) = .05

RATE(H8, G8, B6) = .149, where B6 = 5, G8 = $5,000.00, and H8 = $10,000.00

RATE(8700, -1000, 3) = Error - ``PV'' and ``FV'' must have the same sign

Excel function: N/A