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<< Click to Display Table of Contents >> RRI (interest for fixed-interest investments) |
Syntax:
RRI(Per, PV, FV)
Description:
Returns the interest rate required to obtain a specific future value after a specific period.
This function is applicable to investments with just one payment (made at the beginning) and a fixed interest rate.
The function expects the following arguments:
Per is the number of periods. For example, if the annual interest rate is considered, a period is one year.
PV is the present value.
FV is the future value.
Example:
To obtain $5000 with a fixed-interest investment of $3000 after 10 years. How high the annual interest rate has to be?
RRI(10, 3000, 5000) returns 0.05241 (i.e., about 5.24%)
Compatibility notes:
Microsoft Excel supports this function only in version 2013 or later. In older versions, the function is unknown.
In older versions of PlanMaker this function was called PCF.
See also: