If you don't know the interest rate for a loan but you know the present value,payment,and number of payment periods,you can use the ________ function to determine the interest rate.

Question

Quizplus · Accepted Answer

The RATE function in Excel can be used to calculate the interest rate for a loan when you know the present value, payment, and number of payment periods. This function returns the interest rate per period, which can be multiplied by the number of periods per year to get the annual interest rate. The other functions mentioned (GUESS, PMT, and NPER) are not designed to calculate the interest rate for a loan based on these inputs.

If You Don't Know the Interest Rate for a Loan