Using the RATE function in Excel, I get a NUM error.

[Guest]

Hi Everyone,
I'm using the formula RATE to find out the growth rate for the number of
periods of 10 years, the payment of 0, present value .43, and the future
value of 2.11. I always get the error "NUM". I wonder if something is
formatted incorrectly. I don't put values in for type and guess. I'm not sure
what else to do.

 

[Guest]

The initial cash infusion (PV) must have the opposite sign of the FV. The
assumption is that you will spend cash to initiate the investment,
cconsequently, a negative number. The future value will be that cash back to
you.

PV: -0.43
FV: 2.11
Payment: 0
Term: 10

Rate: 17.2415%

Does that help?

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Regards,
Ron