Hello,

I new to posts so bare with me.

I am having a problem with a certain financial equation.

Here is the guts of the info
I have a present value of a stream of payments (1,029,498).

The benefit is 100,000 payable for 15 years annually. Payable at the
begging of the period at a rate of 6%.

I have 10 years to fund for this benefit earning 7%. which gives me a
level payment of 69,638 a year.

I then figured out how to tie this to compensation with an expected
salary increase rate of 4%. So the funding would grow with his comp.

First contribution for funding purposes is 63,431 with the last payment
being 90,282. (simple Pmt function with an effective rate (1.07/1.04)
and 10 year time limit) then discounted back 9 years at 4%.

This much I know. I did this using the PV and PMT functions in excel.

Now the question.

I would like to back load the funding contributions. For example If the
person's compensation for the first year is $634,310. He would have to
allocate 10% of comp to fund the benefit each year for 10 years. I want
to say 5% for the first couple years and 15% for the last couple. I
would love to use different variations but am unsure how to keep the
presnt value of my stream consistant. I think excel has a function but
can figure it out.

This may be a bit much but if there is anyone out there that can
understand my scenario and help me that would be great.

Thanks
Frank


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