RATE formula used to get the rate of interest use to calculate the EMI amount from the
main input i.e. Loan amount, EMI amount and Number of payments.
Syntex
=RATE (nper, pmt, pv, [fv], [type], [guess])
There were total six arguments in RATE formula, out ot which 3 were main arguements and 3 is optional arguments
Main Argument,
nper - No of payments
pmt - Payments amount/EMI
pv - Present value/loan amount
Optional arguments,
fv- Future value; by default it will be 0
type - 0 or 1, 0 means for payment at the end of period and 1 means payment at the start of period; by default it will be 0
guess - default to 10%
Final answer of RATE formula is in %.
