to compute interest rate from principal and interest amount

Principal amount $100
interest amount $2
i need to repay $102 in 24 instalments
i want the function in excel to compute the interest rate for the computing
the interest rate one month so that the principal plus the interest for 24
months cumulates to $102

=RATE(24,102/24,-100,102)

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Kind regards,

Niek Otten

"PVJ" <PVJ@discussions.microsoft.com> wrote in message
news:E304FC3A-84C6-498B-A672-39F718BBDC47@microsoft.com...
> Principal amount $100
> interest amount $2
> i need to repay $102 in 24 instalments
> i want the function in excel to compute the interest rate for the
> computing
> the interest rate one month so that the principal plus the interest for 24
> months cumulates to $102

PVJ,

Loan: $100
Interest rate: 1.91 %
Term: 2 years
Payments per year: 12
Number of payments: 24
Payment at end of period.
Payment: $4.25
Total payments: $102

See my free Excel add-in "Calculate Payments".
Provide any 3 and the fourth is calculated...
amount, interest rate, term, payment.
One click transfer to the worksheet.
http://www.realezsites.com/bus/primitivesoftware

Jim Cone
San Francisco, USA


"PVJ" <PVJ@discussions.microsoft.com>
wrote in message
news:E304FC3A-84C6-498B-A672-39F718BBDC47@microsoft.com
Principal amount $100
interest amount $2
i need to repay $102 in 24 instalments
i want the function in excel to compute the interest rate for the computing
the interest rate one month so that the principal plus the interest for 24
months cumulates to $102

try

=RATE(24,-102/24,100,0,1)


"PVJ" <PVJ@discussions.microsoft.com> wrote in message
news:E304FC3A-84C6-498B-A672-39F718BBDC47@microsoft.com...
> Principal amount $100
> interest amount $2
> i need to repay $102 in 24 instalments
> i want the function in excel to compute the interest rate for the
> computing
> the interest rate one month so that the principal plus the interest for 24
> months cumulates to $102