=RRI(4, 200000, 120000)
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:
In Excel, you don't need to memorize the complex mathematical equation. Microsoft provides a dedicated function: . The Mathematical Formula For reference, the classic compound interest formula is: rentes rente formel excel
This gives you the average annual (or per-period) compound interest rate, essential for evaluating investments, savings, or loan costs in Danish finance.
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(4, 200000, 120000) Use RRI when you only
-0.116 → -11.6% per year Comparing RRI to Other Excel Functions | Function | Purpose | | :--- | :--- | | RRI | Find the compound interest rate from start and end values. | | FV | Find the future value given a fixed rate. | | PV | Find the present value given a fixed rate. | | RATE | More flexible version of RRI (handles periodic payments). |
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" . | Negative or zero present/future value | Check
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?