RRI

Updated 2024-02-29 14:37:50.967000

Syntax

   SELECT [wct].[RRI] (
      <@Nper, float,>
     ,<@PV, float,>
     ,<@FV, float,>)

Description

Use the scalar function RRI to calculate an equivalent interest rate for the growth of an investment. The formula is:

RRI=\left(\frac{FV}{PV}\right)^\frac{1}{nper}-1

Where

{"columns":[{"field":"column 1"},{"field":"column 2"},{"field":"column 3"}],"rows":[{"column 1":"FV","column 2":"=","column 3":"the future value of the investment"},{"column 1":"PV","column 2":"=","column 3":"the present value of the investment"},{"column 1":"nper","column 2":"=","column 3":"the number of periods."}]}

Arguments

@FV

Future value of the investment. @FV must of a type float or of a type that implicitly converts to float.

@Nper

Number of periods. @Nper must be of type float or of a type that implicitly converts to float.

@PV

Present value of the investment. @PV must be of type float or of a type that implicitly converts to float.

Return Type

float

Remarks

If @PV is NULL then @PV = 0.

If @PV = 0 then NULL is returned.

If @FV is NULL then @FV = 0.

If @Nper is NULL then @Nper = 0.

If @Nper = 0 then NULL is returned.

Examples

SELECT wct.RRI(   36,   --@Nper

                  1000, --@PV

                  1100  --@FV

              ) as RRI;

This produces the following result.

{"columns":[{"field":"RRI","headerClass":"ag-right-aligned-header","cellClass":"ag-right-aligned-cell"}],"rows":[{"RRI":"0.00265101273081281"}]}