Excel formula implicit interest rate
Definition of Implicit Interest Rate. An implicit interest rate is a rate which is not explicitly stated. For example, a client may offer to pay in multiple installments instead of up-front, but not have the sophistication, or need, to explicate the interest rate implied by the offer. Implicit interest can be What is an implicit interest rate? Definition of Implicit Interest Rate. An implicit interest rate is one that is not stated explicitly. Example of Implicit Interest Rate. Assume that I lend you $4,623 and you agree to repay me by giving me $1,000 at the end of each year for 6 years. Obviously you are paying interest.