Formula to give effective rate of interest of an annuity

gthorley

New Member
Joined
May 7, 2003
Messages
20
Wonder if someone could provide me with a formula that gives the annual interest rate received from an annuity

Example: $100,000 is paid to purchase an annuity of $579.00 month for 30 years
 

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Dave Patton

Well-known Member
Joined
Feb 15, 2002
Messages
4,574
Office Version
  1. 365
  2. 2010
Platform
  1. Windows
Excel Workbook
AB
1Principal$100,000.00
2Payments$579.00
3Term30
4Rate5.68%
5Rate5.68%
2a
Excel 2003
Cell Formulas
RangeFormula
B4=RATE(B3*12,B2,-B1)*12
B5=RATE(30*12,579,-100000)*12
 

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