Formulas and functions > Functions from A to Z > RRI (interest for fixed-interest investments)

Syntax:

RRI(Per, PV, FV)

Description:

This returns the interest rate required to obtain a specific future value after a specific period.

This function is applicable to investments with just one payment (made at the beginning) and a fixed interest rate.

The function expects the following arguments:

Per is the number of periods. If, for example, the annual interest rate is considered, a period is one year.

PV is the present value (initial amount)

FV is the future value.

Example:

You would like to obtain $5000 with a fixed-interest investment of $3000 after 10 years. How high does the annual interest rate have to be?

RRI(10, 3000, 5000) returns 0.05241 (i.e., about 5.24%).

Compatibility notes:

Microsoft Excel supports this function only in version 2013 or later. The function is unknown in older versions.

In older versions of Calculate, this function was called PCF.