Calculates the interest rate resulting from the profit (return) of an investment.
RRI(P; PV; FV)
P is the number of periods needed for calculating the interest rate.
PV is the present (current) value. The cash value is the deposit of cash or the current cash value of an allowance in kind. As a deposit value a positive value must be entered; the deposit must not be 0 or <0.
FV determines what is desired as the cash value of the deposit.
For four periods (years) and a cash value of 7,500 currency units, the interest rate of the return is to be calculated if the future value is 10,000 currency units.
=RRI(4;7500;10000) = 7.46 %
The interest rate must be 7.46 % so that 7,500 currency units will become 10,000 currency units.