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Siebel VB Language Reference > VB Language Reference >
Rate Function
This standard VB function returns the interest rate per period for an annuity or a loan. Syntax
Rate(nper, pmt, pv, fv, due, guess)
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nper |
The total number of payment periods |
pmt |
The constant periodic payment per period |
pv |
The present value of the initial lump sum amount paid (as with an annuity) or received (as with a loan) |
fv |
The future value of the final lump sum amount required (as with a savings plan) or paid (0 as with a loan) |
due |
0 if due at the end of each period 1 if due at the beginning of each period |
guess |
An estimate for the rate returned |
Returns
The interest rate per period. Usage
In general, a guess of between 0.1 (10 percent) and 0.15 (15 percent) would be a reasonable value for guess. Rate is an iterative function: It improves the given value of guess over several iterations until the result is within 0.00001 percent. If it does not converge to a result within 20 iterations, it signals failure. Example
This example finds the interest rate on a 10-year $25,000 annuity that pays $100 per month. Sub Button_Click
Dim aprate
Dim periods
Dim payment, annuitypv
Dim annuityfv, due
Dim guess
Dim msgtext as String
periods = 120
payment = 100
annuitypv = 0
annuityfv = 25000
guess = .1
' Assume payments are made at end of month
due = 0
aprate = Rate(periods,-payment,annuitypv,annuityfv, _
due, guess)
aprate = (aprate * 12)
msgtext = "The percentage rate for a 10-year $25,000 _
annuity"
msgtext = msgtext & "that pays $100/month has "
msgtext = msgtext & "a rate of: " & Format(aprate, _
"Percent")
End Sub
See Also
FV Function
IPmt Function
IRR Function
NPV Function
Pmt Function
PPmt Function
PV Function
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