The formula you were given isn't quite right. You need to use the 5th argument
to indicate the payment is made at the beginning of the year rather than the
end, i.e.

=RATE(5,-1000,0,5802,1) = 5%

On Wed, 2 Mar 2005 10:53:04 -0800, Dr. Sachin Wagh
wrote:

SORRY, Not been able to get the desired - it's giving the wrong result

let me give another example
Deposit 1000 every year for 5 years
@ 5%
Year 1: 1000 1050
Year 2: 2050 2153
Year 3: 3153 3310
Year 4: 4310 4526
Year 5: 5526 5802

=RATE(5,-1000,1,5802) yeilds 7.46% instead of 5%

Please help





"JE McGimpsey" wrote:

One way:

=RATE(21,-2574,1,129635)

In article ,
Dr. Sachin Wagh wrote:

I deposit Rs. 2574 each year for 21 years

At the end of 21 years I get Rs. 129635

How do I understand the Compound Rate thats' been applied

Regards & Thanx