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OH! Rule of 70! Or 72 which ever you prefer. Simply divide 70 or 72 by
the rate of inflation. There is plenty references to it if you google. Eric wrote: I am solving for years. "Bob I" wrote: Take 1.04 raised to the power of the years you want to calculate for, multiply by the current cost, then subtract the current cost to see what the difference is. Eric wrote: I just really need to know how to calculate the future cost if something will increase 4% yearly. the "system" is a service we offer that eliminates "current cost" "Bob I" wrote: How can this system pay for itself? Does it generate income? Inflation will tell you the future cost to replace the system. |
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