Is there anybody know why i am getting error

[Guest]

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)

----------------
This post is a suggestion for Microsoft, and Microsoft responds to the
suggestions with the most votes. To vote for this suggestion, click the "I
Agree" button in the message pane. If you do not see the button, follow this
link to open the suggestion in the Microsoft Web-based Newsreader and then
click "I Agree" in the message pane.

http://www.microsoft.com/office/com...e-7e535de9cc4b&dg=microsoft.public.excel.misc

 

[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).

 

[Guest]

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.

 

[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.

 

[Guest]

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)

 

[Guest]

Just one clarification "assume" - should have been "awesome."

 

[Guest]

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.