Calculate annual compund interest from gross interst
I am new to Excel but am using it to help evaluate real estate property
values. One of the ways I evaluate a property is to look at a neighborhood's appreciation rates and then calculate a houses current market value (roughly) based on appreciation rates obtained from a subscription service and sales history. The problem I have is the appreciation rates are provides as a gross appreciation rate from 1990 to present and my data for a given property is for some subsection of that time (say from 1995); therefore, I need to break the gross appreciation rate down into an annual compound interest rate. Given a gross appreciation rate over a given period of time (say, 87% over 15 years), how can I calculate the annual compound appreciation rate? Thanks, Dave |
Calculate annual compund interest from gross interst
Ho Dave,
=RATE(15,,100,-187) -- Kind regards, Niek Otten "Dave Roberts" wrote in message ups.com... I am new to Excel but am using it to help evaluate real estate property values. One of the ways I evaluate a property is to look at a neighborhood's appreciation rates and then calculate a houses current market value (roughly) based on appreciation rates obtained from a subscription service and sales history. The problem I have is the appreciation rates are provides as a gross appreciation rate from 1990 to present and my data for a given property is for some subsection of that time (say from 1995); therefore, I need to break the gross appreciation rate down into an annual compound interest rate. Given a gross appreciation rate over a given period of time (say, 87% over 15 years), how can I calculate the annual compound appreciation rate? Thanks, Dave |
Calculate annual compund interest from gross interst
Niek,
Thank you. I notice that this seems to round to the nearest percentage, how can I get the result accurate to two decimal places (i.e., 7.05% vs. 7%) Thanks, Dave |
Calculate annual compund interest from gross interst
Hi Dave,
FormatCellsNumberPercentage, choose the number of decimal places. BTW it doesn't round, it just doesn't show all the digits. Try calculating with it (1 year's interest) and you'll see it has more digits than it shows. -- Kind regards, Niek Otten "Dave Roberts" wrote in message oups.com... Niek, Thank you. I notice that this seems to round to the nearest percentage, how can I get the result accurate to two decimal places (i.e., 7.05% vs. 7%) Thanks, Dave |
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