Difference between revisions of "Documentation/How Tos/Calc: INTRATE function"
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: The formula used is: | : The formula used is: | ||
:: (salevalue - purchasevalue)/purchasevalue * (days_in_a_year/days_item_owned) | :: (salevalue - purchasevalue)/purchasevalue * (days_in_a_year/days_item_owned) | ||
+ | |||
+ | : As the formula takes no account of compounding, this function is most reliable for periods of less than a year. See '''[[Documentation/How_Tos/Calc: Derivation of Financial Formulas|Derivation of Financial Formulas]]''' for a formula review. | ||
=== Example: === | === Example: === | ||
− | <tt>'''INTRATE(" | + | <tt>'''INTRATE("2009-02-02"; "2009-12-03"; 1000; 1080; 0)'''</tt> |
− | : returns approximately <tt>'''0. | + | : returns approximately <tt>'''0.096'''</tt>, or <tt>'''9.6%'''</tt>. |
=== See also: === | === See also: === | ||
Line 34: | Line 36: | ||
[[Documentation/How_Tos/Calc: Financial functions|'''Financial functions''']] | [[Documentation/How_Tos/Calc: Financial functions|'''Financial functions''']] | ||
+ | |||
+ | === Issues: === | ||
+ | * Calc and Excel do not agree on the number of days in a year in basis 1. It is not clear which is theoretically correct. Calc uses the number of days in the year containing <tt>'''purchasedate'''</tt>. |
Revision as of 16:48, 5 September 2008
INTRATE
Returns the equivalent annual interest rate for an item bought at one price and sold at another.
Syntax:
INTRATE(purchasedate; saledate; purchasevalue; salevalue; basis)
- purchasedate: the date the item was bought.
- saledate: the date the item was sold.
- purchasevalue: the amount paid for the item.
- salevalue: the amount received for the item.
- basis: is chosen from a list of options and indicates how the year is to be calculated. Defaults to 0 if omitted.
- 0 - US method (NASD), 12 months of 30 days each
- 1 - Exact number of days in months, exact number of days in year
- 2 - Exact number of days in month, year has 360 days
- 3 - Exact number of days in month, year has 365 days
- 4 - European method, 12 months of 30 days each
- The equivalent interest rate returned is the (un-compounded) interest rate that would have to be paid on an investment of purchasevalue to turn it into salevalue on the date of sale.
- The formula used is:
- (salevalue - purchasevalue)/purchasevalue * (days_in_a_year/days_item_owned)
- As the formula takes no account of compounding, this function is most reliable for periods of less than a year. See Derivation of Financial Formulas for a formula review.
Example:
INTRATE("2009-02-02"; "2009-12-03"; 1000; 1080; 0)
- returns approximately 0.096, or 9.6%.
See also:
Derivation of Financial Formulas
Issues:
- Calc and Excel do not agree on the number of days in a year in basis 1. It is not clear which is theoretically correct. Calc uses the number of days in the year containing purchasedate.