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)
||Required. The rate at which the investment grows each period.|
||Required. The investment's current value.|
||Required. The investment's desired future value.|
All values must be positive and greater than 0.
- RRI: The RRI function returns the interest rate needed for an investment to reach a specific value within a given number of periods.