Rate of Return
There are a two ways of doing this that I know of:
Create a range of cash flows (-100000, 0 for 36 cells, 1460.86 for 84 cells),
then feed this range to IRR. The result will be the monthly rate of return
(because your payments are monthly).
Add a range of dates to the cash flow cells, and feed these two ranges to XIRR.
It will return the effective annual interest rate.
--
Regards,
Fred
"Sr Accountant" wrote in message
...
I am trying to find the effective rate of return for the following:
Present Value $100,000
3 yrs = 0 payments
7 yrs = $1460.86 per payment
Life of loan is 10 yrs.
If I calculate just on the 7 yrs, I get 6%, but isn't there a way to find
the effective rate of return over the entire life of the loan?
Any help you can provide would be greatly appreciated.
Thank you!
|