Help with Rate function

[Griff]

Hi,

I am trying to complete some exercises using the RATE function.
Starting with an invested sum, a number of monthly payments over a number of
years and the monthly payment, fine all works out OK.

But, how can I simply get the annual interest rate on a lump sum invested
for 1 year using the RATE function.

E.g..
Investment £10,000
Term 1 year
Final value £10,400

i.e..Interest rate would be 4%.
Simpler long hand I know but need to achieve using RATE function if at all
possible.

Fields available in RATE function argument window are: Nper, Pmt, Pv, Fv &
Type.

Tried all the combinations that I can think of to no avail.

Thanks,

Lynda.

 

[Don Guillett]

try
=RATE(1,,-10000,10400)

 

[Peo Sjoblom]

One possible way

=RATE(1,-10000,0,10400,1)