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Excel provides several options for calculating financial values, including functions and operators. You can access a variety of functions from the Functions Library on the Formulas tab of the ...
But, doing this calculation manually or even with a calculator can be cumbersome. Here’s where the RATE function in MS Excel can be useful — it gives the answer in a jiffy.
2. Excel’s XIRR function. Excel’s XIRR function calculates a more accurate internal rate of return because it takes into consideration different-size time periods. To use this function, you must ...
Next (in B7), if the rate is per year (which is almost always), enter 12 (for 12 months in the year. In column C, enter the term or length of the loan (in months, not years).
You can calculate this with the RATE function by filling its five fields — Nper (number of periods - 12), Pmt (periodic investment – 5000 with a minus sign), Pv (present value – 0), Fv ...
If you have ten different rates, for example, your ranges would end at "A12" and "B12," rather than "A3" and "B3." Hit the "Enter" key to display the weighted average within the blank cell.