RRI
The rate per period that grows a present value to a future one in a number of periods.
Group: Financial. Compatible with DAX.
Syntax
RRI ( <nper>, <pv>, <fv> )| Parameter | Type | Description |
|---|---|---|
nper | Number | How many periods the growth takes. |
pv | Number | The value at the start. |
fv | Number | The value at the end. |
Returns
Number. The steady growth each period, as a decimal (0.05 for 5 %).
Remarks
- It is (fv / pv) ^ (1 / nper) − 1: the compound growth rate, the same every period.
- A fall gives a negative rate. An nper of 0 or less, a pv of 0, or a pv and fv of opposite signs, is an error.
Examples
Growth of the yearly volume
From 1.2 million liters to 1.5 million in five years.
EVALUATE
ROW (
"A year", RRI ( 5, 1200000, 1500000 ),
"All five years", ( 1 + RRI ( 5, 1200000, 1500000 ) ) ^ 5 - 1
)| A year | All five years |
|---|---|
| 0.0456395525912732 | 0.25 |