how do i solve for interest rate earned when i know:
number of months,
amount of each payment,
amount of my original investment?

"RATE" doesn't get me there

i've already set up to solve for the payment when i input the PV, I and N.

Jess

Hi Jesss,

Please supply your formula, the values of the input cells, the result you expected and what you got instead.
"doesn't get me there" is not very accurate info about what your problem is :)

--
Kind regards,

Niek Otten
Microsoft MVP - Excel

"Jess" wrote in message ...
| how do i solve for interest rate earned when i know:
| number of months,
| amount of each payment,
| amount of my original investment?
|
| "RATE" doesn't get me there
|
| i've already set up to solve for the payment when i input the PV, I and N.
|
| Jess

Neik,

Let me try to present it this way.

I sold a BOX and financed it this way:
Amount for each payment = $132.86
Number of payments = 36 monthly payments
My investment in the BOX = $2000.00
What is my yield?

I used the PMT function to determine that $4000.00 @ 12% apr for 36 months =
$132.86.

Since my net cost is $2000.00, I need to determine my return on that cost.

Jess

You may have noticed that the result of your PMT function was negative.
If you do the same in the RATE function (PMT and PV opposite signs) you'll get it working.
Of course you'll get a monthly rate, which you might want to convert to annual.
--
Kind regards,

Niek Otten
Microsoft MVP - Excel

"Jess" wrote in message ...
| Neik,
|
| Let me try to present it this way.
|
| I sold a BOX and financed it this way:
| Amount for each payment = $132.86
| Number of payments = 36 monthly payments
| My investment in the BOX = $2000.00
| What is my yield?
|
| I used the PMT function to determine that $4000.00 @ 12% apr for 36 months =
| $132.86.
|
| Since my net cost is $2000.00, I need to determine my return on that cost.
|
| Jess

Neik,

Thanks, between what you wrote and rereading the "help on this function"
many times it FINALLY came out correctly! I had that "slap myself upside the
head" moment.

Thanks again,

Jess



"Niek Otten" wrote:

You may have noticed that the result of your PMT function was negative.
If you do the same in the RATE function (PMT and PV opposite signs) you'll get it working.
Of course you'll get a monthly rate, which you might want to convert to annual.
--
Kind regards,

Niek Otten
Microsoft MVP - Excel

"Jess" wrote in message ...
| Neik,
|
| Let me try to present it this way.
|
| I sold a BOX and financed it this way:
| Amount for each payment = $132.86
| Number of payments = 36 monthly payments
| My investment in the BOX = $2000.00
| What is my yield?
|
| I used the PMT function to determine that $4000.00 @ 12% apr for 36 months =
| $132.86.
|
| Since my net cost is $2000.00, I need to determine my return on that cost.
|
| Jess