Excel formula: Calculate interest rate for loan. Calculate interest rate for loan. To calculate the periodic interest rate for a loan, given the loan amount, the number Discount factor calculation based on periodic interest rate and number of periods. Tags: interest rates methodology time value of money Periodic Compounding - Under this method, the interest rate is applied at intervals and generated. This interest is added to the principal. Periods here would If your credit card has an annual percentage rate of, say, 18%, that doesn't The result is called the periodic interest rate, or sometimes the daily periodic rate. for the time should match the time period for the interest rate. In the below formula, “m” represents number of compounding periods per year and “n” represents

## 28 May 2016 – rate is the interest rate for each period. – nper is the number of compounding periods. – pmt is the additional payment per period, and it is

RATE Formula in Excel. This RATE formula provides the interest rate of a period per annuity. RATE function calculates the repeatedly to find the rate for that period. RATE function can be used to find an interest rate of a period and then can be multiplied to find the annual interest rate. So this formula can be used to derive the interest rate. Interest rate can be for any period not just a year as long as compounding is per this same time unit. For example, your stated rate is 9% per quarter compounded monthly. Enter 9% and 3 (for 3 months per quarter to get P = 3%, the effective rate per month. Side Note: the effective rate calculation tells us the effective rate per quarter in this case is 9.2727%. Period Interest Rate per Payment. Period interest rate per payment is used to determine the interest rate to charge to each payment. This is important when the compounding frequency does not match the payment frequency. Use the period interest rate per payment calculator below to solve the formula. The period interest rate is given by the formula Nominal annual interest rate / number of periods per year. 1. 12% / 2 periods (semi annually) = 6% with 18 periods (9 years * 2 periods per year) 2.

### earned. COMPOUND INTEREST. FV = PV (1 + i)n i = . j = nominal annual rate of interest m = number of compounding periods i = periodic rate of interest.

earned. COMPOUND INTEREST. FV = PV (1 + i)n i = . j = nominal annual rate of interest m = number of compounding periods i = periodic rate of interest. Excel formula: Calculate interest rate for loan. Calculate interest rate for loan. To calculate the periodic interest rate for a loan, given the loan amount, the number Discount factor calculation based on periodic interest rate and number of periods. Tags: interest rates methodology time value of money Periodic Compounding - Under this method, the interest rate is applied at intervals and generated. This interest is added to the principal. Periods here would If your credit card has an annual percentage rate of, say, 18%, that doesn't The result is called the periodic interest rate, or sometimes the daily periodic rate.