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<< Click to Display Table of Contents >> RRI (interest for fixed-interest investments) |
Syntax:
RRI(Per, PV, FV)
Description:
This 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. If, for example, the annual interest rate is considered, a period is one year.
PV is the present value (initial amount)
FV is the future value
Example:
You would like to obtain $5000 with a fixed-interest investment of $3000 after 10 years. How high does the annual interest rate have 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. The function is unknown in older versions.
In older versions of PlanMaker, this function was called PCF.
See also: