Life of Lease Payment calcuation
 

I saw someone posted this before but the person who answered it didn't
go into real detail of the numbers they chose for the answer.

I have a lease the payment is $10,000 a year, there is a 5% increases
every 5 years and the Lease lasts for 30 years.

What would be the formula in Excel that would show what the full
amount of lease payments that would have been made at the end of 30
years??

Also I want to be able to change the 5 years for every increase to any
number of years from 1-10 years.

Does anyone know a formula in excel that would do this?

Thanks

Life of Lease Payment calcuation
 

This kind of problem can be solved with a financial function (FV in this case).

However, to do any kind of financial calculation, the payment and the interest
rate must be for the same period. In your case, the trick is to understand that
your period is 5 years. (It might be easier to understand that "$50,000 per year
for 6 years increasing at 5% per year" is the same problem).

Answer: =fv(5%,6,50000) or $340,095.64

To generalize for any multi-year period:

=fv(5%,30/n,10000*n)

--
Regards,
Fred


wrote in message
ups.com...
I saw someone posted this before but the person who answered it didn't
go into real detail of the numbers they chose for the answer.

I have a lease the payment is $10,000 a year, there is a 5% increases
every 5 years and the Lease lasts for 30 years.

What would be the formula in Excel that would show what the full
amount of lease payments that would have been made at the end of 30
years??

Also I want to be able to change the 5 years for every increase to any
number of years from 1-10 years.

Does anyone know a formula in excel that would do this?

Thanks