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#1
Posted to microsoft.public.excel.worksheet.functions
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Finance functions discrepancy
Note: I have previously posted this in NG
microsoft.public.excel.worksheetfunctions (note the lack of a 'dot' before functions). I've had no response, and it looks like a very queit NG, so have posted here. Hopefully someone can help . . . . Hi I am trying to calculate using the RATE and FV functions and find that the results do not tally:- Initially I did a RATE function as below: RATE function:- "time period years" Payment Present Value Future Value Type 10 -1200.00 100,000 0 0 Interest rate: 7.75% =RATE(A2*12,B2,C2,D2,E2)*12 I assumed that, if I did a FV function with values corresponding to the above, I would get a Future Value of zero. But no. I got a FV of -19.18. Can anyone explain why this is please? FV function interest rate "time period years" Payment Present Value Type 7.75% 10 -1200.00 100000.00 0 Future Value -19.18 =FV(A2/12,B2*12,C2,D2,E2) Can anyone explain why this is please? I may also post some more messages asking for help on finance functions. TIA Steve |
#2
Posted to microsoft.public.excel.worksheet.functions
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Finance functions discrepancy
You are rounding your rate to 7.75% when it is actually
7.74797561352715000%. Also make sure you input FV = in the rate formula and ont the FV of the formula. Steve Simons wrote: Note: I have previously posted this in NG microsoft.public.excel.worksheetfunctions (note the lack of a 'dot' before functions). I've had no response, and it looks like a very queit NG, so have posted here. Hopefully someone can help . . . . Hi I am trying to calculate using the RATE and FV functions and find that the results do not tally:- Initially I did a RATE function as below: RATE function:- "time period years" Payment Present Value Future Value Type 10 -1200.00 100,000 0 0 Interest rate: 7.75% =RATE(A2*12,B2,C2,D2,E2)*12 I assumed that, if I did a FV function with values corresponding to the above, I would get a Future Value of zero. But no. I got a FV of -19.18. Can anyone explain why this is please? FV function interest rate "time period years" Payment Present Value Type 7.75% 10 -1200.00 100000.00 0 Future Value -19.18 =FV(A2/12,B2*12,C2,D2,E2) Can anyone explain why this is please? I may also post some more messages asking for help on finance functions. TIA Steve |
#3
Posted to microsoft.public.excel.worksheet.functions
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Finance functions discrepancy
If you really have the RATE() function in A2, then you should get 0 as a
result of the FV() function call. But your returned value indicates that you have the value 7.75% in A2. That's what RATE() return displays, rounded to 2 decimals, but the actual value returned is 7.74797561352715%. Thus your discrepancy. (If you have the RATE() formula in A2, check that you don't have the Tools/Options/Calculation Precision as displayed checkbox checked.) And yes, m.p.e.worksheetfunctions is denegrated in favor of this ng. In article , Steve Simons wrote: Note: I have previously posted this in NG microsoft.public.excel.worksheetfunctions (note the lack of a 'dot' before functions). I've had no response, and it looks like a very queit NG, so have posted here. Hopefully someone can help . . . . Hi I am trying to calculate using the RATE and FV functions and find that the results do not tally:- Initially I did a RATE function as below: RATE function:- "time period years" Payment Present Value Future Value Type 10 -1200.00 100,000 0 0 Interest rate: 7.75% =RATE(A2*12,B2,C2,D2,E2)*12 I assumed that, if I did a FV function with values corresponding to the above, I would get a Future Value of zero. But no. I got a FV of -19.18. Can anyone explain why this is please? FV function interest rate "time period years" Payment Present Value Type 7.75% 10 -1200.00 100000.00 0 Future Value -19.18 =FV(A2/12,B2*12,C2,D2,E2) Can anyone explain why this is please? I may also post some more messages asking for help on finance functions. TIA Steve |
#4
Posted to microsoft.public.excel.worksheet.functions
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Finance functions discrepancy
Hi
Thank you both for the quick and perfectly spot-on response. I changed the rate to be 7.747975613527150% and the FV returned zero, as I'd hoped. Cheers Steve On Tue, 28 Nov 2006 15:00:50 +0000, Steve Simons wrote: Note: I have previously posted this in NG microsoft.public.excel.worksheetfunctions (note the lack of a 'dot' before functions). I've had no response, and it looks like a very queit NG, so have posted here. Hopefully someone can help . . . . Hi I am trying to calculate using the RATE and FV functions and find that the results do not tally:- Initially I did a RATE function as below: RATE function:- "time period years" Payment Present Value Future Value Type 10 -1200.00 100,000 0 0 Interest rate: 7.75% =RATE(A2*12,B2,C2,D2,E2)*12 I assumed that, if I did a FV function with values corresponding to the above, I would get a Future Value of zero. But no. I got a FV of -19.18. Can anyone explain why this is please? FV function interest rate "time period years" Payment Present Value Type 7.75% 10 -1200.00 100000.00 0 Future Value -19.18 =FV(A2/12,B2*12,C2,D2,E2) Can anyone explain why this is please? I may also post some more messages asking for help on finance functions. TIA Steve |
#5
Posted to microsoft.public.excel.worksheet.functions
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Finance functions discrepancy
Steve Simons wrote:
I changed the rate to be 7.747975613527150% and the FV returned zero, as I'd hoped. Wrong conclusion, IMHO. If you want the exact rate computed by RATE(), then use =RATE(....). FYI, the above is number is not exact either; it is merely Excel's representation up to 15 decimal places. Of course, that is more than good enough for most computations. But it is the "principal" of the matter :-). OTOH, if you would like a "nice round" interest rate like 7.75%, you could simply compute the last payment amount, for example: interest rate "time period years" Payment Present Value Type 7.75% 10 -1200.00 100000.00 0 Future Value -19.18 =FV(A2/12,B2*12,C2,D2,E2) =c2 + fv(a2/12, b2*12, c2, d2, e2) |
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