Implicit interest rate

Hi Susan,
Formula for...?
if there is 4 month no paymnet and then 0 payment and then 3600 per month?

Do you want to find how much would it cost you to hire the machine for 34 months?
So
=3600*34=122400

Thanks Bob:

The present value is $72000
I will be paying 30 pmts of 3600 = $108000
Therefore, ($108,000- $72,000)= 36000 is interest and I'm trying to find out what the effective interest rate is.

Hi Susan

I don't think there'a a formula using native functions that calculates what you want.

I see 3 options:

- build a table with the Capital/payments for the 34 months. Then use Goal Seek to calculate the interest. This is the quick and easy way to do it.

- determine a mathematical equation that solves your problem. Then use Goal Seek to find its roots. This should also not be difficult. These types of problems are usually possible to solve using geometric progressions

- if you know vba write a udf. Design and implement an algorithm that solves your problem embedding the iteration to find the solution.

Hello,

I need an implicit interest rate on a leased car offer

car price=$35,222.74
residual value=$22,469.20
monthly payment=$504.26

How would I solve this in excel?

thanks