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
 

Excel Facts

Does the VLOOKUP table have to be sorted?
No! when you are using an exact match, the VLOOKUP table can be in any order. Best-selling items at the top is actually the best.
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
 
Upvote 0

Forum statistics

Threads
1,214,827
Messages
6,121,812
Members
449,048
Latest member
greyangel23

We've detected that you are using an adblocker.

We have a great community of people providing Excel help here, but the hosting costs are enormous. You can help keep this site running by allowing ads on MrExcel.com.
Allow Ads at MrExcel

Which adblocker are you using?

Disable AdBlock

Follow these easy steps to disable AdBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the icon in the browser’s toolbar.
2)Click on the "Pause on this site" option.
Go back

Disable AdBlock Plus

Follow these easy steps to disable AdBlock Plus

1)Click on the icon in the browser’s toolbar.
2)Click on the toggle to disable it for "mrexcel.com".
Go back

Disable uBlock Origin

Follow these easy steps to disable uBlock Origin

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back

Disable uBlock

Follow these easy steps to disable uBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back
Back
Top