Exactly what interest rate does this function return? Is it compounded, simple, and what is the purpose of the "basis"?

Use the Function Wizard to enter the function and click on "Help on this
function"
It tells you all about it

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Kind regards,

Niek Otten

Microsoft MVP - Excel

"gfoster07k" wrote in message
...

Exactly what interest rate does this function return? Is it compounded,
simple, and what is the purpose of the "basis"?


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gfoster07k

Since there were several viewers and no responses, I am posting the answer I found for general interest. The interest rate returned is simple interest per year with no compounding. The equation is (total interest earned)/(investment x fractional years invested). Example: $1000/($10,000 x 1.5yrs) = 6.67% per year.

What do you mean, no responses?

--
Kind regards,

Niek Otten

Microsoft MVP - Excel

"gfoster07k" wrote in message
...

Since there were several viewers and no responses, I am posting the
answer I found for general interest. The interest rate returned is
simple interest per year with no compounding. The equation is (total
interest earned)/(investment x fractional years invested). Example:
$1000/($10,000 x 1.5yrs) = 6.67% per year.

gfoster07k Wrote:
Exactly what interest rate does this function return?


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gfoster07k