PDURATION function

PDURATION (Rate, PresentValue, FutureValue) PDURATION (Rate; PresentValue; FutureValue)

Rate

Number Number

The interest rate per period.

Number Number

The initial investment value.

Number Number

The value of the investment to be attained.

Number Number

The number of periods required by an investment to realize a desired value.

Returns the number of compounding periods required for an investment to grow from a present value to a future value at a constant interest rate.

PDURATION (5 % , 4000, 5000)

PDURATION (5 % ; 4000; 5000)

Returns roughly 4.57, which is the number of years needed for an investment of $4,000 to grow to $5,000 at 5% annual interest.

PDURATION (5 % / 12, 4000, 5000)

PDURATION (5 % / 12; 4000; 5000)

Returns roughly 53.67, which is the number of months needed for the same investment to reach $5,000 when 5% annual interest is compounded monthly.