Time to Maturity (DURATION)
Syntax: DURATION(Interest; Investment; Future)
The DURATION function returns the number of periods (years if a yearly interest rate is used) for a given investment to reach the desired future value, assuming a constant rate of interest. For example, if you want to know how many years you have to wait for $1,000 deposited in a bank account that pays 3% interest annually for your money to become $2,000, use the following formula:
=DURATION(3%; 1000; 2000)
Figure 8-3. Sample result of the DURATION function
The answer is a long 23.45 years. If you want to see the answer given in whole years, without fractions, use ...
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