Question

The Formula call for variables. I’ve look all over and can’t find what these variables are and what values they’re supposed to represent.

RATE($nper, $pmt, $pv, $fv = 0.0, $type = 0, $guess = 0.1)

Is anyone familiar with this function? Do you know what values the variables are meant to represent?

Answer 1

From the Excel help file:

RATE(nper,pmt,pv,fv,type,guess)

For a complete description of the arguments nper, pmt, pv, fv, and
type, see PV.

• Nper – is the total number of payment periods in an annuity.
• Pmt – is the payment made each period and cannot change over the life of the annuity. Typically, pmt includes principal and interest
  but no other fees or taxes. If pmt is omitted, you must include the fv
  argument.
• Pv – is the present value — the total amount that a series of future payments is worth now.
• Fv – is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (the
  future value of a loan, for example, is 0).

• Type – is the number 0 or 1 and indicates when payments are due.

  Set type equal to the following if payments are due:

  • 0 or omitted – At the end of the period
  • 1 – At the beginning of the period

• Guess – is your guess for what the rate will be.

  If you omit guess, it is assumed to be 10 percent.
  If RATE does not converge, try different values for guess. RATE usually converges if guess is between 0 and 1.

Remark

Make sure that you are consistent about the units you use for
specifying guess and nper. If you make monthly payments on a four-year
loan at 12 percent annual interest, use 12%/12 for guess and 4*12 for
nper. If you make annual payments on the same loan, use 12% for guess
and 4 for nper