Escalation Formula

[Joe Gieder]

First, thank you for looking at this post and any and all help you can offer.

Is there a formula to calculate escalation?
Say I have a price of $1,000, the average increase is 4.5% per year and I
want to escalate the 1000 over a 10 year period. Could this be done? I'm
trying to find the result for each year and then separately for year 10.

Thank you for your help
Joe

 

[Marcelo]

assuming

a1 = 1000
b1 = 4,5%
c1 = # of years (1,2..10)
d1 =(a1*(1+b1)^c1)

change c1 to see the result as you need

hth
--
regards from Brazil
Thanks in advance for your feedback.
Marcelo



"Joe Gieder" escreveu:

 

[Joe Gieder]

Thank you for the formula. It does just what I need. How does the formula
know to compound?

 

[Joe Gieder]

Thank you for the formula it works perfectly, I appreciate your help and
response. One question, why do you use a -1000? I used the formula without it
and I received a negative answer for the value but why does this formula
require a -1000?

Joe

 

[Don Guillett]

It's amazing what you can find in the help index for FV. Look there.