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PDURATION

The PDURATION function in Google Sheets is used to calculate the number of periods it will take for an investment to reach a specific value at a given rate.

Function Syntax and Parameters

Syntax: PDURATION(rate, present_value, future_value)

Parameters:

  • rate: The interest rate for the investment.
  • present_value: The present value of the investment.
  • future_value: The desired future value of the investment.

Step-by-Step Tutorial

  1. Calculating the number of periods using PDURATION:
    • Example: =PDURATION(0.05, 1000, 1500)
    • Result: The function will return the number of periods it will take for a $1000 investment to grow to $1500 with an interest rate of 5%.

Use Cases and Scenarios

  1. Investment Planning: Determine the number of periods needed to reach a specific investment goal.
  2. Loan Repayment: Calculate the time it will take to repay a loan based on interest rates.
  3. Retirement Planning: Estimate the number of periods needed to accumulate a desired retirement fund.

Related Functions

  • PV: Calculate the present value of an investment or loan.
  • FV: Calculate the future value of an investment.

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