To convert to annual rate: =(1+0.0161)^12 - 1 → Example 3: Negative Growth You buy a car for 200,000 DKK . After 4 years , its value is 120,000 DKK . What is the average annual compound depreciation?
=RRI(6, 5000, 5500)
Use RRI when you only have a single initial amount, a final amount, and time. Use RATE for loans or investments with regular payments. | Error | Likely Cause | Fix | | :--- | :--- | :--- | | #NUM! | Negative or zero present/future value | Check that Pv and Fv are positive numbers. | | #VALUE! | Non-numeric arguments | Ensure all inputs are numbers, not text. | | Unexpected decimal | Wrong period units | Match Nper units to the desired rate (e.g., use months for monthly rate). | Summary The RRI function in Excel is the quickest way to apply the rentes rente formel . Instead of typing =(Fv/Pv)^(1/Nper)-1 , simply use: rentes rente formel excel
In Danish finance, "rentes rente" (compound interest) is the principle where interest earned on an investment is reinvested, so you earn interest on your interest. The formal formula for calculating the average annual growth rate is known as the "rentes rente formel" . To convert to annual rate: =(1+0
Rate = (End Value / Start Value)^(1/Periods) - 1 Excel’s RRI function calculates the equivalent interest rate needed for an investment to grow from a present value to a future value over a specified number of periods. Syntax =RRI(Nper, Pv, Fv) =RRI(6, 5000, 5500) Use RRI when you only
| Argument | Explanation | | :--- | :--- | | | Number of periods (years, months, quarters, etc.) | | Pv | Present Value (start value) | | Fv | Future Value (end value) | Note: RRI always returns the rate per period . If Nper is in years, the result is the annual compound interest rate. Practical Examples Example 1: Annual Compound Interest You invest 10,000 DKK in a fund. After 5 years , it is worth 15,000 DKK . What was the average annual compound growth rate?