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how to find interest rate in present value formula. RATEC212 C3 C4 Please note that C2 contains the number of years. To calculate monthly interest rate the formula in C6 is.
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The PV Formula calculates the Present Value Interest rate which is the rate used to determine the present-day value of a sum of money to be received sometime in the. P V I F 1 1 r n. Mathematically it is represented as PVA Due P 1 1 rn-tn 1 rn rn.
However with a little math and some common sense anyone can quickly calculate an investments interest.
R discount rate or the interest rate. I F P 1 T - 1 Step 2 Divide the future value by the present value. The present value of receiving 5000 at the end of three years when the interest rate is compounded quarterly requires that n and i be stated in quarters. The RATE function also.
