How do I use excel to calculate an interest rate when I know the following?
Intial value of lease
Monthly charge
Total charge over the period
Period in months
What I need is a formula to enter into the interest rate tab in the table below:
Contract Length | Leased Asset | Invoiced per month | Total charge over lease period | Interest rate |
---|---|---|---|---|
24 | 250 | 10 | 240 | ?????? |
Any help would be much appreciated.
Replies (13)
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There are some interest rate templates on Excel.
The one I used last week needs the interest rate and then tells you the repayments but you just need to use trial and error to match up with the actual repayments. Bit tedious but it takes couple of minutes tops.
The one I used last week needs the interest rate and then tells you the repayments but you just need to use trial and error to match up with the actual repayments. Bit tedious but it takes couple of minutes tops.
Can you not use "goalseek"?
https://support.office.com/en-us/article/use-goal-seek-to-find-the-resul...
My previous response was a little curt. Apologies.
The Rate function will work if you have constant payments. It takes the form:
= RATE(number of periods 24, periodic payment -(250+240)/24 if I have understood the question, initial value 250). The last three arguments are optional and allow for a residual value, whether payments are made at the start or end of each period and an initial guess (default is 10%).
But this is AWEB, this is just for abuse.
If it's an argument you're after you want 12A next door.
EDIT: Crikey I need to be a bit quicker, already three in, I didn't expect that