rri

Equivalent interest rate for a lump-sum growth.

Syntax

v = rri(nper, pv, fv)

Description

Returns (fv/pv)^(1/nper) - 1 — the periodic rate needed to grow pv into fv over nper periods. Inverse of pduration on rate.

Example

rri(10, 10000, 16000)    % rate to grow $10K to $16K in 10 years

See also

• pduration — Periods needed for a lump-sum to grow to a target value.
• rate — Periodic interest rate for an annuity.