Annualised interest rate
Is it possible to work out an annulised interest rate of a savings plan
given that I have the following data: 1. annual premium 2. number of years (i.e. premiums) 3. anticipated future value I know how to find out the Average Growth Rate of an investment (MS KB article 123198) but this assumes that a lump sum investment has been made at the start of the period. How can I calcualte what the anticpated growth on an investment plan with annual premiums is? Linda Adams |
Check out the RATE() function in XL Help:
For instance, if you have an annual premium of $100 for 4 years, with an anticipated future value of $450, you could use =RATE(4,-100,0,450,1) === 4.77% Using the 1 as the fourth argument assumes that you pay in advance, and that the FV is at the *end* of the 4th year. In article , "Linda Adams" wrote: Is it possible to work out an annulised interest rate of a savings plan given that I have the following data: 1. annual premium 2. number of years (i.e. premiums) 3. anticipated future value I know how to find out the Average Growth Rate of an investment (MS KB article 123198) but this assumes that a lump sum investment has been made at the start of the period. How can I calcualte what the anticpated growth on an investment plan with annual premiums is? |
Many thanks - works perfectly. I felt sure the answer was staring me in the
face! Linda Adams "JE McGimpsey" wrote in message ... Check out the RATE() function in XL Help: For instance, if you have an annual premium of $100 for 4 years, with an anticipated future value of $450, you could use =RATE(4,-100,0,450,1) === 4.77% Using the 1 as the fourth argument assumes that you pay in advance, and that the FV is at the *end* of the 4th year. In article , "Linda Adams" wrote: Is it possible to work out an annulised interest rate of a savings plan given that I have the following data: 1. annual premium 2. number of years (i.e. premiums) 3. anticipated future value I know how to find out the Average Growth Rate of an investment (MS KB article 123198) but this assumes that a lump sum investment has been made at the start of the period. How can I calcualte what the anticpated growth on an investment plan with annual premiums is? |
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