4

Assume the PV=100, FV=150, yearly IR=X, number of period = 60 (5 years of interest and compounding is monthly basis)

Therefore:

FV = PV * (1 + X / 12)^60 

How can I calculate X easily?

Technically I can use (root(FV/PV))-1)*12, where root(N) is the 60th root of N. But is there any existing function I can use such as PV and FV?

9

Yes, and it's called RATE. Example of usage:

=RATE(60,0,-100,150)

calculates the percentage required for growing $100 to $150 over 60 interest payment periods, while taking out $0 each period. The answer is 0.68%. Wolfram Alpha agrees.

The complete list of financial functions in Google Spreadsheets is here.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.