CTERM(R, FV, PV)

 

Description

This function calculates the number of compounding periods required for an investment of PV to reach a value of FV at the given interest rate R.  The formula is given by:

 

 

Parameters

 

R

Interest rate.

 

FV

Future value of the investment.

 

PV

Present value of the investment.

 

Examples

 

CTERM(0.085, 1500, 1000) = 4.97

(Years, if the annual interest rate is 8.5%.)

 

CTERM(B5, D5, C5) = 11

Where B5 = 10.5%, D5 = 300,000, and C5 = 100,000.

 

CTERM(.09, 1900, 1100) = 6.3