financial excel formula

  • Thread starter Thread starter dcampbell@ps-av
  • Start date Start date
D

dcampbell@ps-av

Trying to use excel to determine the % return on a stock from the tim
you purchase until you sell, adjusted for time. ie., key in Pv o
money today; input Fv or (the selling price); enter the amount of tim
expressed in months or years (N); calc the rate of return %? p
$50.00
FV $74.00
N 3 years
% return =??? using a texas instruments ba-35 calculator th
answer is 13.96%. Can't get this out of excel, any suggestions
 
=RATE(3;0;-50;74)

The financial function follow the rule that incoming and outgoing money are
different in sign. Hence -50 and +74

--
Regards,
Auk Ales

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Hi D Campbell!

Try:

=RATE(3,0,-50,74,0,0)
Returns: 13.9603843061013%

I don't think that the approach of the RATE or other financial
functions is significantly different from a disciplined approach to
the use of the financial keys PV, FV, n, i, and PMT of the BA35. My
first financial calculator was the BA55.

Or since the formula is capable of being expressed for RATE where no
payments are involved:

=(74/50)^(1/3)-1
Returns: 13.9603843061013%


--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
 
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