RATE
(nper,pmt,pv,fv,type,guess) function
Returns the interest rate per period of an annuity.
RATE is calculated by iteration and can have zero or more solutions.
Nper is the total number
of payment periods in an annuity.
Pmt is the payment made
each period and cannot change over the life of the annuity. Typically,
pmt includes principal and interest but no other fees or taxes. If pmt
is omitted, you must include the fv argument.
Pv is the present value—
the total amount that a series of future payments is worth now.
Fv is the future value,
or a cash balance you want to attain after the last payment is made. If
fv is omitted, it is assumed to be 0 (the future value of a loan, for
example, is 0).
Type is the number 0 or
1 and indicates when payments are due.
Eg: for the RATE(360;599,55;100000)
we should obtain 0%, which is the monthly interest, to obtain the annual
interest we need to multiply the value by 12, and then multiply the result
by 100 to get the percentage.
IRR function (values;guess)
Returns the internal rate of return of an investment
for a set of values in cash.
These cash flows do not need to be constant, as in
the case of an annuity. But the cash flows need to occur at regular intervals
like months or years. The internal rate of return equals the rate produced
by an investment project with payments (negative values) and earnings
(positive values) that occur in regular periods.
IRR syntax (values;guess)
Values = is a matrix or
reference to a cell that contains the numbers with which it needs to calculate
the internal rate of return.
• The values argument needs to contain at
least one positive value and one negative value with which to calcuate
the internal rate of return, if not, it will return the error #¡NUM!
• IRR interprets the order of the box flows
according to the the order of value argument.The values of the payments
and earnings need to be correct.
Guess
= is a number that is estimated that will approximate the IRR result.
In most cases it is not necessary to provide the estimate argument, it
is assumed to be 0,1 (10%)
Eg:
For an investment table like the one seen below.

A 
B 
C 
D 
E 
F 
1 

Ingresos 




2 
Initial.Inv 
1st year 
2nd year 
3rd year 
TIR 
TIR 2nd year 
3 
60000 
15000 
20000 
35000 
7% 
28% 
Cell E3=IRR(A3:D3) and cell
F3=IRR(A3:C3)
MIRR
function (values;financing_rate;reinvestment_rate)
Returns the modified internal rate of return, for
a series of periodic flows, declared cost of the investment and interest
to be returned on investing the cash.ctivo.
MIRR syntax(values;financing_rate;reinvestment_rate)
Values = is a matrix or
a cell reference that contains numbers. These numbers represent a series
of payments (negative values) and earnings (positive values) that are
performed in regular periods.
The values argument should contain at least one positive
and one negative value, in order to calculate the modified internal rate.
If not , TIM will return the error value #¡DIV/O!
Financing_rate = is the
interest rate payed for the money used in the cash flow
Reinvestment_rate = is
the interest rate obtained from the cash flows measured by their reinvestment.
Eg:
For an investment table like the following:

A 
B 
C 
D 
E 
F 
G 
1 

Proceeds 





2 
Initial.Inv 
1st year 
2nd year` 
3rd year 
Interest rate 
Reinvestment rate 
TIRM 
3 
160000 
20000 
35000 
56000 
10% 
15% 
8% 
Cell G3=MIRR(A3:D3;E3;F3)
