Need Help with a Formula

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Guest

I am new to excel. Trying to set up a formula for the following 2 examples

1. Semi Annual payments of $440,000 for 20 years, or 8Million dollars now,
what is the interest rate that was used to arrive at the 8 million dollars

2. Semi annual payments of $440,000 for 20 years, an interest rate of 7%,
how much should the payment be in a lump sum today?

Thank you for your help, if you could provide me the formula so that I can
play around with various amounts or interest rates that would be helpful.
 
=RATE(40,-440000,0,8000000)*2 = -9.3945%

=PV(0.07/2,40,440000) = ($9,396,231.83)


Don Pistulka
 
In line:

busterbrown885 said:
I am new to excel. Trying to set up a formula for the following 2 examples

1. Semi Annual payments of $440,000 for 20 years, or 8Million dollars now,
what is the interest rate that was used to arrive at the 8 million dollars
Click to expand...

=RATE(20*2,-440000,8000000,0)*2 ===> 9.17%

2. Semi annual payments of $440,000 for 20 years, an interest rate of 7%,
how much should the payment be in a lump sum today?
Click to expand...

=PV(A1/2,40,-440000) ===> $9,396,231.83
 
sorry,

I read the first question wrong. should be:

=RATE(40,-440000,8000000)*2 9.1689%

=PV(0.07/2,40,440000) = ($9,396,231.83)



Don Pistulka
 
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