Is there anybody know why i am getting error

M

Muhammed Rafeek M

Hi
when i use Rate function for a particular valu i am not getting result.
Eg:
PV Period FV Rate
0.12 4 54.8 #NUM!
Function: =RATE(B2,,-A2,C2)

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I

Ian

I've never used the RATE function, but looking at the help for this, the
syntax is:
RATE(nper,pmt,pv,fv,type,guess)

This suggests to me that you must specify a payment value (pmt).
 
M

Muhammed Rafeek M

thanks for your reply, but we can use rate function the way what i used.
RATE(nper,,pv,fv)
I am getting result for other values, except where is pv value is very less
like what i mentioned.
 
I

Ian

Sorry, I'd forgotten that the formatting gets stripped off in here. The
first 3 parameters are in bold, suggesting they are mandatory. If this is
not the case (as you are suggesting), then I'm afraid I can't help. As I
said previously, I've never used the RATE function.
 
B

Brad

You want to go from 12 cents to 54.8 in four year - that's pretty assume.
PV*(1+i)^period = FV
(1+i)^period = FV/PV
(1+i) = (FV/PV)^(1/period)
i = (FV/PV)^(1/period) - 1

in your example i = 3.622744 (362.744% pretty steep interest rate)
 
T

Tom

The RATE function uses a guess & check calculation. If it doesn't get an
answer after 20 tries, it returns the #NUM! error. Use the "guess" parameter
with a value near what you expect the rate to be.
 
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