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Financial

RATE function: solve for the implied interest rate of a loan or lease

Calculate periodic and annualized interest rates from known payment, term, and principal values using RATE.

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Iterative solver for unknown loan or annuity rates

RATE(nper, pmt, pv, [fv], [type], [guess]) solves for the periodic interest rate of an annuity using Newton-Raphson iteration. Multiply a monthly rate by 12 to express the nominal annual percentage rate (APR).

Cash inflows (loan principal +10000) and cash outflows (monthly payment -235) must have opposite signs, otherwise RATE cannot converge and returns #NUM!.

=ROUND(RATE(B2, B3, B4) * 12, 4)

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