Excel Financial Function to calculate Rate of Interest

MS Excel Financial Function is very helpful to calculate No of Installment (NPER), Present Value (PV) of any future cash flows, Future Value (FV), Amount per Installment given or receive (PMT), Net Present Value (NPV) of any project, Rate of Interest etc.
These types of financial measurement is very important for managerial decision making process, finance decision making process, accounts department and more.

First Rate of Interest is calculating. Example is mentioned under:-

Say, Mr X, retired employee, gets pension \$10,000. Present value \$1,036,246.19. Get pension for 20 years. Calculate Rate of Interest

VIEW PICTURE AND SOLUTION (click on picture to view full size)
or VIEW UNDER MENTIONED VIDEO TUTORIAL

Pension Amount = (\$10,000.00) Per Month (put negative value)
Rate of Interest = ? Per Year
No of Installment = 240 20 years & 12 months each
Present Value = \$1,036,246.19

Rate of Interest = 10.00% (calculated)

In 2003 Excel:- Insert Menu -- Function -- Select Financial -- Select RATE -- Ok --
PMT:- (\$10000.00), PV:- \$1,036,246.19, NPER:- 240

In 2007 Excel:- Formula Menu -- Financial -- RATE --
PMT:- (\$10000.00), PV:- \$1,036,246.19, NPER:- 240
Always Put Negative PMT i.e. Loan or Pension Amount etc

Stay Connected With Free Updates

 Subscribe via Email
You can leave a response, or trackback from your own site.

Pijush Roy, Founder & Author of "Share Your Knowledge", is a young freelance blogger, a reader, a painter, .....read more