Assume the PV=100, FV=150, yearly IR=X, number of period = 60 (5 years of interest and compounding is monthly basis)
Therefore:
FV = PV * (1 + X / 12)^60
How can I calculate X easily?
Technically I can use (root(FV/PV))-1)*12, where root(N) is the 60th root of N. But is there any existing function I can use such as PV and FV?
Best Answer
Yes, and it's called
RATE. Example of usage:calculates the percentage required for growing $100 to $150 over 60 interest payment periods, while taking out $0 each period. The answer is
0.68%. Wolfram Alpha agrees.The complete list of financial functions in Google Spreadsheets is here.