https://bugs.documentfoundation.org/show_bug.cgi?id=173657
Bug ID: 173657
Summary: Incorrect and illogical example in the RATE function
help text
Product: LibreOffice
Version: 6.0.0.3 release
Hardware: All
OS: All
Status: UNCONFIRMED
Severity: normal
Priority: medium
Component: Documentation
Assignee: [email protected]
Reporter: [email protected]
CC: [email protected]
Description:
The example in the help text for the RATE() function is incorrect and
illogical.
Actual Results:
The actual Example:
What is the constant interest rate for a payment period of 3 periods if 10
currency units are paid regularly and the present cash value is 900 currency
units.
=RATE(3;-10;900) = -75.63% The interest rate is therefore 75.63%.
==============
So you take out a loan of 900 currency units and repay it in three instalments
of 10 currency units each (totalling 30). As the target value is zero, this
cannot work.
Expected Results:
New, updated example:
=RATE(3;-320;900) = 3,30%
===============
If, on the other hand, you pay back 3 × 320 currency units (a total of 960),
that does make sense.
A second example:
What must the annual interest rate be for a deposit to double in 20 years?
=RATE(20;0;-20000;40000) = 3,53%
Reproducible: Always
User Profile Reset: No
Additional Info:
My suggestion would be to use two examples for each of the financial functions
that operate with the same parameters (namely: PV, RATE, NPER, PMT, FV). One
with a positive net present value (a bank loan) and one with a negative net
present value (a bank deposit).
In addition, the functions mentioned (IPMT, PPMT, CUMPRINC, CUMIPMT) could also
be included on one of the help pages.
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