01-26-2018 07:20 AM
I have a litle problem at work and i have difficulty solving it.
Here it goes:
I am trying to use the IRR function (just like excel) to calculate what we call TAEG / interest rate.
The problem i using the IRR function in a pratical way.
Basically i have (for example) a stable monthly payout of 47.22 € and i want to use the IRR to calculate what kind of rate i will have after 72 months. The initial outlay is 2462.5 for example.
In sas i tried using the formula irr(12, -2462.5, 47.22, 47.22, 47.22, 47.22, 47.22, 47.22) and it returns -99€.
What i assume is that i have to put 1 as the beginning value and put the monthly payout 72 times...but it is just not pratical, even more since i have more than one example.
Isn't there a simpler way when you have a stable monthly payout? Should i try to do a cycle?
Thanks for the help guys.
01-26-2018 07:43 AM
If you want the yearly interest rate, do this:
data test; init = 2462.5; yearly = 47.22 * 12; rate_percent = irr(1, -init, yearly, yearly, yearly, yearly, yearly, yearly); run;
01-29-2018 08:07 AM - edited 01-29-2018 08:08 AM
Does not work completly
I am using this in excel : =+(1+IRR(G54:G174))^12-1
Which means that in G54 to G174 there is in G54 the -2462.5 € and from G55 to G126 there is only the value 48.71€.
The final result is 13.18% .
In sas using the formula you gave me it hits 8.4560170962.
What am i doing wrong?