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Monday, February 13, 2017

RRI Time Value of Money Function


Time Value of Money Functions

Below is an excerpt from Excel Time Value of Money Functions for CPAs, a CPE course offered by CPASelfstudy.com


New Single Sum functions in Excel 2013 

There are two new time value of money functions in Excel 2013, the RRI and PDURATION functions.  Both of these functions will only work if you have Excel 2013 or greater.  You will not be able to replicate the examples using a lower version of Excel.

The RRI function returns the equivalent interest rate for the growth of an investment.  The inputs required are the number of periods, the present value and the future value.
In this blog entry, we are only going to discuss RRI and save PDURATION for another time.

RRI Example:

As an example, let’s say you invested $100,000 for 8 years compounded annually and the investment grows to a value of $150,000.  What is the equivalent rate of return?  Click here to read the rest of the entry.

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