Rate formula

  • Thread starter Thread starter Chuck W
  • Start date Start date
C

Chuck W

Hi,
I have the date of an investment in A1(12/02/2000), I have the current
date in A2,the initial amount invested in A3 (2500) and the current
value 3200 in A4. I'm trying to find the annual rate of return in A5.
I have tried the formula Rate but I must be doing something wrong. Do
not know how to show the 3 and a fraction years. Can someone help?

Thanks
Chuck
 
You want:

=Rate((a2-a1)/365,0,a3,-a4)

Rate has no problem handling non-integer years.
 
Fred:

Can I take this a step further? Is there a formula if I make
additional investments at uneven intervals.

Example I invest 1000 on 12/01/2000, 1500 on 6/12/2001 and 5000 on
7/18/2003
Today the account is worth $9200.

Chuck
 
Now you want XIRR. Just give it the dates and cash flows, and it will
compute your return. Note, the cash flow for the last transaction ("today it
is worth $9200") is negative. You're calculating the return assuming you
cashed in the investment today.
 
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