Finance.Rate Method (Int32, Double, Double, Double, Finance.Period, Double)

FinanceRate Method (Int32, Double, Double, Double, FinancePeriod, Double)

Returns the interest rate per period of an annuity with an initial guess.

Namespace: Imsl.Finance
Assembly: ImslCS (in ImslCS.dll) Version: 6.5.2.0

Syntax

public static double Rate(
	int nper,
	double pmt,
	double pv,
	double fv,
	FinancePeriod time,
	double guess
)

Public Shared Function Rate ( 
	nper As Integer,
	pmt As Double,
	pv As Double,
	fv As Double,
	time As FinancePeriod,
	guess As Double
) As Double

public:
static double Rate(
	int nper, 
	double pmt, 
	double pv, 
	double fv, 
	FinancePeriod time, 
	double guess
)

static member Rate : 
        nper : int * 
        pmt : float * 
        pv : float * 
        fv : float * 
        time : FinancePeriod * 
        guess : float -> float

Parameters

nper: Type: SystemInt32
A int which specifies the number of periods.
pmt: Type: SystemDouble
A double which specifies the payment made each period.
pv: Type: SystemDouble
A double which specifies the present value.
fv: Type: SystemDouble
A double which specifies the annuity's value after the last payment.
time: Type: Imsl.FinanceFinancePeriod
The time in a Period when the payment is made (either AtEnd or AtBeginning).
guess: Type: SystemDouble
A double value which represents an initial guess at the interest rate per period of an annuity.

Return Value

Type: Double
A double which specifies the interest rate per period of an annuity.

Remarks

Rate is calculated by iteration and can have zero or more solutions. It can be found by solving the following:

If ${\it rate} = 0$ ,

${\it pv} + {\it pmt} \times {\it nper} + {\it fv} = 0$

If ${\it rate} \ne 0$ ,

${\it pv}(1 + {\it rate})^{\it nper} + {\it pmt} \left[ {1 + {\it rate} \left( {\it period} \right)} \right] {{(1 + {\it rate})^{\it nper} - 1} \over {\it rate}} + {\it fv} = 0$

Reference

Finance Class

Rate Overload

Imsl.Finance Namespace

Other Resources

Example