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#1
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compound sum interest factor function?
Trending performance may be performed by calculating
compound sum interest factors to generate growth rates. Using the sample data,one can calculate growth rates for sales and net income for multiple periods. To compute, divide the last-period figure by the first- period figure. This returns a compound sum interest factor. Then by referring to the compound interest table, (number of periods & interest factors) one can determine the growth rate represented by the ratio. To determine the answer, one looks to the top of the compound interest table (where rates are displayed) to identify the compound interest rate which corresponds with the interest factor. My question for this excel worksheet function newsgroup is -- does excel have a function that computes the compound interest rate that corresponds to the computed compound sum interest factor? Final answer I am looking for is a compound interest rate. Thanks. jl |
#2
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compound sum interest factor function?
Joeleandri,
Look at the function RATE (financial functions) -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Trending performance may be performed by calculating compound sum interest factors to generate growth rates. Using the sample data,one can calculate growth rates for sales and net income for multiple periods. To compute, divide the last-period figure by the first- period figure. This returns a compound sum interest factor. Then by referring to the compound interest table, (number of periods & interest factors) one can determine the growth rate represented by the ratio. To determine the answer, one looks to the top of the compound interest table (where rates are displayed) to identify the compound interest rate which corresponds with the interest factor. My question for this excel worksheet function newsgroup is -- does excel have a function that computes the compound interest rate that corresponds to the computed compound sum interest factor? Final answer I am looking for is a compound interest rate. Thanks. jl |
#3
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compound sum interest factor function?
Auk Ales
The 2nd required field in the RATE function, PMT, is the payment made each period and cannot change over the life of the loan or investment. I am not making any payments. Basically, all I'm trying to do is calculate the compound interest of a security from a beginning period to an ending period. Seems straight forward, what am I missing? Thanks for replying. jl -----Original Message----- Joeleandri, Look at the function RATE (financial functions) -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Trending performance may be performed by calculating compound sum interest factors to generate growth rates. Using the sample data,one can calculate growth rates for sales and net income for multiple periods. To compute, divide the last-period figure by the first- period figure. This returns a compound sum interest factor. Then by referring to the compound interest table, (number of periods & interest factors) one can determine the growth rate represented by the ratio. To determine the answer, one looks to the top of the compound interest table (where rates are displayed) to identify the compound interest rate which corresponds with the interest factor. My question for this excel worksheet function newsgroup is -- does excel have a function that computes the compound interest rate that corresponds to the computed compound sum interest factor? Final answer I am looking for is a compound interest rate. Thanks. jl . |
#4
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compound sum interest factor function?
If you make no payments you fill in a value of 0.
The intrestrate then "connects" the Present value ( PV) and the Future Value (FV). For instance : RATE(10;0;-10000;15000;1) = 4,138...% meaning that : 10000 * (1+0,04138..)^10 = 15000 10000 is taken negative because the convention is followed that outgoing money ( for instance an investment) is negatieve and incoming money ( the result after - in this example - 10 years) is positive. (NB 10 years is not actually true ; it's more accurate a period of 10 intervals with - in this example - 4,138...% intrest per interval) -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Auk Ales The 2nd required field in the RATE function, PMT, is the payment made each period and cannot change over the life of the loan or investment. I am not making any payments. Basically, all I'm trying to do is calculate the compound interest of a security from a beginning period to an ending period. Seems straight forward, what am I missing? Thanks for replying. jl -----Original Message----- Joeleandri, Look at the function RATE (financial functions) -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Trending performance may be performed by calculating compound sum interest factors to generate growth rates. Using the sample data,one can calculate growth rates for sales and net income for multiple periods. To compute, divide the last-period figure by the first- period figure. This returns a compound sum interest factor. Then by referring to the compound interest table, (number of periods & interest factors) one can determine the growth rate represented by the ratio. To determine the answer, one looks to the top of the compound interest table (where rates are displayed) to identify the compound interest rate which corresponds with the interest factor. My question for this excel worksheet function newsgroup is -- does excel have a function that computes the compound interest rate that corresponds to the computed compound sum interest factor? Final answer I am looking for is a compound interest rate. Thanks. jl . |
#5
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compound sum interest factor function?
On second thought : The answer I gave IS correct. However if no annual
payments are involved you can as well derive from the formula : (1+rate/100)^N = FV / PV a more direct formula : Rate = e ^ ( ln (FV / PV) / n ) * 100% -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Auk Ales The 2nd required field in the RATE function, PMT, is the payment made each period and cannot change over the life of the loan or investment. I am not making any payments. Basically, all I'm trying to do is calculate the compound interest of a security from a beginning period to an ending period. Seems straight forward, what am I missing? Thanks for replying. jl -----Original Message----- Joeleandri, Look at the function RATE (financial functions) -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Trending performance may be performed by calculating compound sum interest factors to generate growth rates. Using the sample data,one can calculate growth rates for sales and net income for multiple periods. To compute, divide the last-period figure by the first- period figure. This returns a compound sum interest factor. Then by referring to the compound interest table, (number of periods & interest factors) one can determine the growth rate represented by the ratio. To determine the answer, one looks to the top of the compound interest table (where rates are displayed) to identify the compound interest rate which corresponds with the interest factor. My question for this excel worksheet function newsgroup is -- does excel have a function that computes the compound interest rate that corresponds to the computed compound sum interest factor? Final answer I am looking for is a compound interest rate. Thanks. jl . |
#6
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compound sum interest factor function?
Sorry : Formula should be : Rate = [ e ^ { ln (FV / PV) / n } -1 ] * 100%
-- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "A.W.J. Ales" wrote in message ... On second thought : The answer I gave IS correct. However if no annual payments are involved you can as well derive from the formula : (1+rate/100)^N = FV / PV a more direct formula : Rate = e ^ ( ln (FV / PV) / n ) * 100% -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Auk Ales The 2nd required field in the RATE function, PMT, is the payment made each period and cannot change over the life of the loan or investment. I am not making any payments. Basically, all I'm trying to do is calculate the compound interest of a security from a beginning period to an ending period. Seems straight forward, what am I missing? Thanks for replying. jl -----Original Message----- Joeleandri, Look at the function RATE (financial functions) -- Regards, Auk Ales * Please reply to this newsgroup only * * I will not react on unsolicited e-mails * "joeleandri" wrote in message ... Trending performance may be performed by calculating compound sum interest factors to generate growth rates. Using the sample data,one can calculate growth rates for sales and net income for multiple periods. To compute, divide the last-period figure by the first- period figure. This returns a compound sum interest factor. Then by referring to the compound interest table, (number of periods & interest factors) one can determine the growth rate represented by the ratio. To determine the answer, one looks to the top of the compound interest table (where rates are displayed) to identify the compound interest rate which corresponds with the interest factor. My question for this excel worksheet function newsgroup is -- does excel have a function that computes the compound interest rate that corresponds to the computed compound sum interest factor? Final answer I am looking for is a compound interest rate. Thanks. jl . |
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