Financial Toolbox™

annurate - Periodic interest rate of annuity

Syntax

Rate = annurate(NumPeriods, Payment, PresentValue, FutureValue, 
Due)

`NumPeriods`	Number of payment periods.
`Payment`	Payment per period.
`PresentValue`	Present value of the loan or annuity.
`FutureValue`	(Optional) Future value of the loan or annuity. Default = 0.
`Due`	(Optional) When payments are due: 0 = end of period (default), or 1 = beginning of period.

Rate = annurate(NumPeriods, Payment, PresentValue, FutureValue, Due) returns the periodic interest rate paid on a loan or annuity.

Find the periodic interest rate of a four-year, $5000 loan with a $130 monthly payment made at the end of each month.

Rate = annurate(4*12, 130, 5000, 0, 0)

Rate =
      0.0094

(Rate multiplied by 12 gives an annual interest rate of 11.32% on the loan.)