The PDURATION function returns the number of periods for an investment to reach a specific value at a given rate. Mathematically, PDURATION = (log(futureValue) - log (currentValue))/(log(1 + rate)).
Parts of a PDURATION function
PDURATION(rate, present_value, future_value)
| Part | Description |
rate |
Required. The rate at which the investment grows each period. |
present_valuepresent_value |
Required. The investment's current value. |
future_valuefuture_value |
Required. The investment's desired future value. |
Notes
All values must be positive and greater than 0.
Examples
| PDURATION | FORMULA |
| 1.817059493 | =PDURATION(0.25, 10, 15) |
| 3.600511394 | =PDURATION(0.75, 2, 15) |
Related functions
- RRI: The RRI function returns the interest rate needed for an investment to reach a specific value within a given number of periods.