Difference between revisions of "Documentation/How Tos/Calc: RRI function"
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* <tt>'''numperiods'''</tt> may be entered as a fractional number, but in this case the result may be slightly inaccurate, as the fractional period will calculate as if partially compounded. | * <tt>'''numperiods'''</tt> may be entered as a fractional number, but in this case the result may be slightly inaccurate, as the fractional period will calculate as if partially compounded. | ||
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* [[Documentation/How_Tos/Calc: RATE function|RATE]] | * [[Documentation/How_Tos/Calc: RATE function|RATE]] | ||
* [[Documentation/How_Tos/Calc: IRR function|IRR]] | * [[Documentation/How_Tos/Calc: IRR function|IRR]] |
Revision as of 09:28, 17 July 2018
CALC FUNCTIONS
Depreciation
Payment Streams, Annuities, Loans
Securities
Coupons
Miscellaneous
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RRI
Returns an equivalent interest rate when an investment increases in value.
Syntax:
RRI(numperiods; presentvalue; futurevalue)
- numperiods: the number of periods in the term.
- presentvalue: the value at the start of the term.
- futurevalue: the value at the end of the term.
- RRI calculates the fixed interest rate needed, so that presentvalue invested for numperiods (and compounded each period) is worth futurevalue at the end of the term. RRI returns a fixed interest rate which applies to each period.
- The underlying equation is:
- presentvalue * (1 + RRI)numperiods = futurevalue.
Example:
RRI(8; 1000; 1600)
- returns approximately 6.05%. You invest $1,000, and receive $1,600 after 8 years. If you had instead invested that sum in a fixed rate interest account, with annually compounding interest, the account would have needed to pay 6.05% to gain the same value.
Issues:
- numperiods may be entered as a fractional number, but in this case the result may be slightly inaccurate, as the fractional period will calculate as if partially compounded.
{{#switch:EN
| RU = Смотрите также:
| UA = Дивіться також:
| EN = See Also
| PT = Ver também
| #default = See Also
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