This will return a periodic interest rate of 3.21 percent. Excel may by default round this to the nearest whole percentage point, so you will have to right-click the cell, choose "Format" and then ...

The second year's gain is $11 instead of $10 because the 10% rate was applied to a larger account balance. The 10% interest applied to $100 created a new balance of $110.

The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.

Suppose you're looking at a two-year $100 investment with a 7% annual interest rate. Its one-year interest rate is only 4%. In each case, it's easy to compute the final value in Excel.

Let’s use the same example data, but now let’s change two variables: Interest Rate and Number of Years. We still want to determine the monthly payment, but we would like to vary the interest rate and ...

The plots display the distribution of interest rates at the 3-year and 7-year horizons on this page and available at additional frequencies in the downloadable Excel file. A rectified Gaussian ...

Vallee, Boris. "Live Excel Supplement - Exotic Interest Rate Swaps: Snowballs in Portugal." Harvard Business School Spreadsheet Supplement 224-737, February 2024 ...