Rate and FV and PV

[simmo86]

Hi all,

I am trying to work out the interest rate required in the following situation:

Current Fund Value = £211,586
Future Fund Value = £161,916.04
Annual Income = £11,803.68 (paid monthly in arrears)
Duration = 9 years

I have used: =RATE(9*12,-1*(11,803.68/12),211,586,161,916*-1,0)

But this gives 0.28%

When I use the FV calculation using trial and error, I get in excess of 3%!

Any help would be much appreciated.

Many thanks,

Alex

[shg]

That gives a monthly rate, right?