Task 1 of 3
In B5, calculate the annual interest rate of the installment plan (RATE × 12).
Lesson theory
RATE(nper, pmt, pv)— the real interest rate of an installment plan. Multiply by 12 to get the annual rate;NPER(rate, pmt, pv)— how many months it takes to pay off a debt at a given payment;XIRR(values, dates)— the rate of return when money arrives on different dates, not once a year.XNPVdoes the same for NPV.
Signs: money you receive is positive; money you pay out is negative.
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