Cumulated expenses with inflation.
Yes, it's called FV (for future value). It will calculate exactly what you want.
=fv(rate,n,p[0],p[0])
Remember the period for rate and n must match, so the rate specified must be a
monthly rate.
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Regards,
Fred
wrote in message
ups.com...[i]
Hi,
I want to calculate expenses over a period of times.
My inputs are :
- Initial Expense (P[0])
- Number of month (n)
Currently I do not take inflation into acount so my formula is just:
Total Expense : S[n] = P[0]*n
Now, if I want to take inflation into account, my expenses would
increase for each period.
So I have one more input : R is the monthly inflation rate.
So the expense each month is : P[i]=P[i-1]*(1+R)=P[0]*(1+R)^i
An my total expense is S[n] = Sum(P,i=0..n) = P[0]*Sum((1+R)^i,
i=0..n)
How do I translate this in a Excel formula ?
Thank you
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