=rate incorrect or not?

[AceFI]

hi team,
working through some amortising and calculating of loan repayments etc..

I have this example;
Loan Term: 60 months
Interest Rate: 10% Annual
Borrow: $50,000
Fee Excluded from 'advised interest rate' $5,000
my formula would be;
=PMT(10%/12,60,-55000,0,1) = result $1,158.93

If i work backwards on this one using =rate;
=RATE(60,1158.93,-55000,0,1)*12 =result 10%

shouldn't the =rate result be higher, as it includes an extra $5,000?

thanks

 

[AhoyNC]

If the fee is excluded from the interest rate then wouldn't the PMT formula be:

PMT(0.1/12,60,-50000,0,1)

 

[AceFI]

the fee is excluded from the 'advised interest rate' however included in the repayment... this is why i'm trying to work backwards to work out the 'true' interest rate

 

[Dave Patton]

T202410a.xlsm
	A	B	C	D	E	F
1
2	Term	5
3	Rate	10%
4	Amount	$55,000
5	Payment	$1,158.93		Payments at beginning of period
6
7
8	14.3613073%
9
10	Term	5
11	Rate	14.3613%
12	Amount	$50,000		You received only $50,000
13	Payment	$1,158.93
14
1f

Cell Formulas
Range	Formula
B5,B13	B5	=PMT(B3/12,B2*12,-B4,0,1)
A8	A8	=RATE(B2*12,-B5,50000,0,1)*12
B11	B11	=A8