Calculates the annual interest rate that results when a security (or other item) is purchased at an investment value and sold at a redemption value. No interest is paid.
INTRATE(Settlement; Maturity; Investment; Redemption; Basis)
Settlement is the date of purchase of the security.
Maturity is the date on which the security is sold.
Investment is the purchase price.
Redemption is the selling price.
Basis (optional) is chosen from a list of options and indicates how the year is to be calculated.
|0 or missing||US method (NASD), 12 months of 30 days each|
|1||Exact number of days in months, exact number of days in year|
|2||Exact number of days in month, year has 360 days|
|3||Exact number of days in month, year has 365 days|
|4||European method, 12 months of 30 days each|
A painting is bought on 1990-01-15 for 1 million and sold on 2002-05-05 for 2 million. The basis is daily balance calculation (basis = 3). What is the average annual level of interest?
=INTRATE("1990-01-15"; "2002-05-05"; 1000000; 2000000; 3) returns 8.12%.