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Answer: how do I calculate rent over time with interest increase included
To calculate rent over time with interest increase included, follow these steps:
- Determine the initial rent amount and the percentage rate increase per year. Let's say your initial rent is $1000 per month and the rate increase is 5% per year.
- Create a table in Excel with the following columns: Year, Rent, Interest Rate, and Total Rent.
- In the Year column, list the years you want to calculate the rent for. For example, you may want to calculate the rent for the next 5 years.
- In the Rent column, enter the initial rent amount. In this case, it would be $1000.
- In the Interest Rate column, enter the percentage rate increase per year. In this case, it would be 5%.
- In the Total Rent column, enter the following formula:
Formula:
=Rent*(1+Interest Rate)^Year
. This formula calculates the total rent for each year, taking into account the initial rent amount and the percentage rate increase. - Copy the formula down to the other cells in the Total Rent column to calculate the total rent for each year.
- You can now see the total rent for each year, taking into account the interest rate increase. For example, in year 2, the total rent would be $1050, in year 3 it would be $1102.50, and so on.
By using this formula, you can easily calculate what your rent would be in future years when a percentage rate increase is added each year.
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