RRI (NumberOfPeriods, PresentValue, FutureValue) RRI (NumberOfPeriods; PresentValue; FutureValue)
NumberOfPeriods
Number Number
The number of periods in the term.
PresentValue
Number Number
The value at the start of the term.
FutureValue
Number Number
The value at the end of the term.
Returns
Number Number
An interest rate.
Returns the equivalent compound interest rate needed for an investment to grow from a present value to a future value over a given number of periods. This is sometimes called the compound annual growth rate (CAGR).
Example
RRI (10, 2000, 3500)
RRI (10; 2000; 3500)
Returns roughly 5.76%. Suppose you invest $2,000 and it grows to $3,500 over ten years. A fixed-rate account with annually compounding interest would have needed to pay roughly 5.76% per year to produce the same result.