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  1. Preface
  2. Function reference
  3. Constants
  4. Operators
  5. Dates
  6. Functions
  7. System variables
  8. Datatype reference

Function Reference

Function Reference

RATE

RATE

Returns the interest rate earned for each period by a security.

Syntax

RATE(
terms, payment, present value
[,
future value, type
] )
Argument
Required/
Optional
Description
terms
Required
Numeric. Number of periods or payments. Must be greater than 0.
payment
Required
Numeric. Payment amount due for each period. Must be a negative number.
present value
Required
Numeric. Lump-sum amount that a series of future payments is worth now.
future value
Optional
Numeric. Cash balance you want to attain after the last payment. For example, the future value of a loan is 0. If you omit this argument, RATE uses 0.
type
Optional
Boolean. Timing of the payment. Enter 1 if payment is at the beginning of period. Enter 0 if payment is at the end of period. Default is 0. If you enter a value other than 0 or 1,
Data Integration
treats the value as 1.

Return Value

Numeric.

Example

The following expression returns 0.0077 as the monthly interest rate of a loan:
RATE( 48, -500, 20000 )
To calculate the annual interest rate of the loan, multiply 0.0077 by 12. The annual interest rate is 0.0924 or 9.24%.

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