Finance Functions discrepancy

[Steve Simons]

Hi

I am trying to calculate using the RATE and FV functions and find that
the results do not tally:-

Initially I did a RATE function as below:

RATE function:-

"time period
years" Payment Present Value Future Value Type
10 -1200.00 100,000 0 0

Interest rate: 7.75% =RATE(A2*12,B2,C2,D2,E2)*12


I assumed that, if I did a FV function with values corresponding to
the above, I would get a Future Value of zero. But no. I got a FV of
-19.18. Can anyone explain why this is please?

FV function

interest rate "time period
years" Payment Present Value Type
7.75% 10 -1200.00 100000.00 0

Future Value -19.18 =FV(A2/12,B2*12,C2,D2,E2)

Can anyone explain why this is please?

I may also post some more messages asking for help on finance
functions.

TIA

Steve

 

[dgp]

Because for a payment of $1200 the interest rate is not 7.75% - it is
7.748%.

If the rate is actually 7.750% the payment would have to be $1200.11.

Sorry - just noticed the uk email address - substitute £'s for $'s

Dave Parker
West Palm Beach, Florida