Rate of Interest (RATE)

rate(nper, pmt, pv, fv[, when, guess, tol, ...])

Compute the rate of interest per period.

syse.rate(nper, pmt, pv, fv, when='end', guess=None, tol=None, maxiter=100)

Compute the rate of interest per period.

Parameters:
  • nper (array_like) – Number of compounding periods

  • pmt (array_like) – Payment

  • pv (array_like) – Present value

  • fv (array_like) – Future value

  • when ({{'begin', 1}, {'end', 0}}, {string, int}, optional) – When payments are due (‘begin’ (1) or ‘end’ (0))

  • guess (Number, optional) – Starting guess for solving the rate of interest, default 0.1

  • tol (Number, optional) – Required tolerance for the solution, default 1e-6

  • maxiter (int, optional) – Maximum iterations in finding the solution

Note

The rate of interest is computed by iteratively solving the (non-linear) equation:

fv + pv*(1+rate)**nper + pmt*(1+rate*when)/rate * ((1+rate)**nper - 1) = 0

for rate.