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INTRATE

The INTRATE function in Google Sheets calculates the effective interest rate generated when an investment is purchased at one price and sold at another with no interest or dividends generated by the investment itself. This function is commonly used in financial analysis and investment planning.

Function Syntax and Parameters

Syntax: INTRATE(buy_date, sell_date, buy_price, sell_price, [day_count_convention])

Parameters:

  • buy_date: The date when the investment was purchased.
  • sell_date: The date when the investment was sold.
  • buy_price: The purchase price of the investment.
  • sell_price: The selling price of the investment.
  • day_count_convention: [Optional] The day-count convention to use when calculating the interest rate. This parameter is typically represented using numeric codes.

Step-by-Step Tutorial

  1. Calculating the interest rate:
    • Example: =INTRATE(A1, A2, B1, B2)
    • Result: The calculated effective interest rate.

Use Cases and Scenarios

  1. Investment Planning: Determine the effective interest rate of an investment.
  2. Financial Analysis: Analyze the returns generated by different investment options.
  3. Portfolio Management: Evaluate the performance of a portfolio of investments.

Related Functions

  • NPV: Calculate the net present value of an investment based on a series of cash flows.
  • IRR: Calculate the internal rate of return of an investment based on a series of cash flows.

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