Returns
the number of periods needed to reach a given future value from periodic
constant payments into an interest bearing account.
Note:
Interest rate calculation methods differ from
country to country. This function calculates an interest rate based
on U.S. interest rate standards.
Syntax
Term(
n1
,
n2
,
n3
)
Parameters
Parameter
Description
n1
A numeric value or expression representing
the payment amount made at the end of each period.
n2
A numeric value or expression representing
the interest rate per period of the investment.
n3
A numeric value or expression representing
the future value of the investment.
The function returns an error if any parameter
is negative or 0. If any parameter is null, the function returns
null.
Note:
FormCalc follows the IEEE-754 international
standard when handling floating point numeric values. For more information,
see
Number literals
.
Examples
The
following expressions are examples that use the
Term
function:
Expression
Returns
Term(475, .05, 1500)
3.00477517728
(or roughly
3), which is the number of periods needed to grow a payment of $475
into $1500, with an interest rate of 5% per period.
Term(2500, 0.0275 + 0.0025, 5000)
1.97128786369
, which is
the number of periods needed to grow payments of $2500 into $5000,
with an interest rate of 3% per period.
This example uses variables in place of
actual numeric values or expressions. In this case, the first occurrence
of the variable
Inv_Value
is used as the payment
amount, half a percentage point is added to the variable
Int_Rate
to use
as the interest rate, and the variable
Target_Value
is
used as the future value of the investment.