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:
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? 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" . Use RRI when you only have a single
=RRI(Nper, Pv, Fv)