# calculate the interest rate.

• I know its present value
I know what it will be worth in the future
I know the number of years.
compounds once a year
how do I calculate the interest rate I am getting?
tried lots of formulas...
thanks all

this formula works for me, it just needs altering to put rate on the left of the =.
final value=todays value*(1+rate%/1)^(1+years)

• Re: calculate the interest rate.

P = present value
F = Final value
n = Number of years
r = interest rate

F = P*(1+r)^n
r=[(F/P)^(1/n)]-1

• Re: calculate the interest rate.

Quote from MickG;744926

P = present value
F = Final value
n = Number of years
r = interest rate

F = P*(1+r)^n
r=[(F/P)^(1/n)]-1

I get "that name is not valid" when I try the [
thanks

• Re: calculate the interest rate.

here is a sample file
no macros, just simple math
it is from excel 2002? or 3.
thanks

## Files

• Re: calculate the interest rate.

Not sure if you have what you want or Not. This may Help:-
[TABLE="width: 261"]

[tr]

[td]

P = present value =7770.59

[/td]

[/tr]

[tr]

[td]

F = Final value =10085.99

[/td]

[/tr]

[tr]

[td]

n = Number of years = 3

[/td]

[/tr]

[tr]

[td]

r = interest rate = "To Be found"

[/td]

[/tr]

[tr]

[td][/td]

[/tr]

[tr]

[td]

F = P*(1+r)^n

[/td]

[/tr]

[tr]

[td]

r=[(F/P)^(1/n)]-1

[/td]

[/tr]

[tr]

[td][/td]

[/tr]

[tr]

[td]

Find Rate = r

[/td]

[/tr]

[tr]

[td]

((10085.99/7770.59)^(1/3))-1 = r

[/td]

[/tr]

[tr]

[td]

r =0.0908244057013661

[/td]

[/tr]

[tr]

[td][/td]

[/tr]

[tr]

[td]

Check " r" to find Present Value = F

[/td]

[/tr]

[tr]

[td]

F=7770.59*(1+0.0908244057013661)^3

[/td]

[/tr]

[tr]

[td]

F=10085.99

[/td]

[/tr]

[/TABLE]

• Re: calculate the interest rate.

but as you see in the example, the answer should be 2.2.
I used the line above as a known.
what am I missing?
thanks

• Re: calculate the interest rate.

Quote from anon125;745073

but as you see in the example, the answer should be 2.2.
I used the line above as a known.
what am I missing?
thanks

sorry, I made an error in the formula.
your formula works fine when I do it right!
thanks

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