Periodic interest rate of annuity
Rate = annurate(NumPeriods, Payment, PresentValue, FutureValue,
Number of payment periods.
Payment per period.
Present value of the loan or annuity.
(Optional) Future value of the loan or annuity. Default = 0.
(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.)