RATE: Calculates compounded interest rate

In stephlocke/optiRum: Financial Functions & More

Calculates compounded interest rate

Description

Based on loan term, instalment, and the loan amount, this function calculates the associated compound interest rate. This function is designed to be equivalent to the Excel function RATE. It calculates a fixed interest rate.

Usage

RATE(nper, pmt, pv, fv = 0)

Arguments

nper	Number of periods
pmt	Instalment per period (should be negative)
pv	Present value i.e. loan advance (should be positive)
fv	Future value i.e. redemption amount

Value

rate The corresponding compound interest rate required to arrive at an FV of 0

See Also

PMT PV

Other finance: APR(), PMT(), PV()

Examples

RATE(12,-500,3000) # 0.126947 Taken from excel

df<-data.frame(nper=c(12,12),pmt=c(-500,-400),pv=c(3000,3000))
RATE(df$nper,df$pmt,df$pv)  # c(0.126947,0.080927) Taken from excel

stephlocke/optiRum documentation built on March 11, 2024, 2:25 a.m.