Rate formula

[Chuck W]

Hi,
I have the date of an investment in A1(12/02/2000), I have the current
date in A2,the initial amount invested in A3 (2500) and the current
value 3200 in A4. I'm trying to find the annual rate of return in A5.
I have tried the formula Rate but I must be doing something wrong. Do
not know how to show the 3 and a fraction years. Can someone help?

Thanks
Chuck

 

[Fred Smith]

You want:

=Rate((a2-a1)/365,0,a3,-a4)

Rate has no problem handling non-integer years.

 

[Chuck W]

Fred Thanks for the help,
Chuck

You want:

=Rate((a2-a1)/365,0,a3,-a4)

Rate has no problem handling non-integer years.

 

[Chuck W]

Fred:

Can I take this a step further? Is there a formula if I make
additional investments at uneven intervals.

Example I invest 1000 on 12/01/2000, 1500 on 6/12/2001 and 5000 on
7/18/2003
Today the account is worth $9200.

Chuck

 

[Fred Smith]

Now you want XIRR. Just give it the dates and cash flows, and it will
compute your return. Note, the cash flow for the last transaction ("today it
is worth $9200") is negative. You're calculating the return assuming you
cashed in the investment today.