Constant growth

0

050529

The formul =FV((rate cell),(Year cell - year cell),(amount cell +amount
cell)) is giving me result "num". The objective is to apply a constant
inflationery rate to amounts to arrive at future amount.
 
G

Gary's Student

Make sure that (Year cell-year cell) in your formula is actually giving you
the correct total number of payments.
 
0

050529

Yes it is. The start time (year cell) is locked by $ sign.

I am trying to project future $ value at constant growth rate i.e. if I
spend $10,000 to buy a new car, how many dollars I will spend after five
years for the same new car if the price growth rate is say 3%?
 
G

Gary's Student

FV is normally used to compute the future value of a cash stream of periodic
constant payments. Please look at FVSCHEDULE in EXCEL Help to see if this
function might be more useful to you. It calculates the future value of an
initial investment given either constant or fluctuating rates.

Good Luck
 
0

050529

Thanks Gary's Student
--
050529
Accountant


Gary's Student said:
FV is normally used to compute the future value of a cash stream of periodic
constant payments. Please look at FVSCHEDULE in EXCEL Help to see if this
function might be more useful to you. It calculates the future value of an
initial investment given either constant or fluctuating rates.

Good Luck
Click to expand...
 
P

PC

For a single sum you really don't require and XL function. Just use the
formula for future value

youramount * (1+rate)^n

where rate is the "inflationary" rate (as a decimal) and n is the number of
years.

PC
 
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