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Future Value of Increasing Payments
Untested, but try the following as an array formula:
=SUM(INITIAL*(1+INCREMENT)^(ROW(INDIRECT("1:"&TERM ))-1)*(1+APR)^(TERM-ROW(IN DIRECT("1:"&TERM)))) INITIAL is the name of the cell containing the initial investment (ie $1000 in your example) INCREMENT is the name of the cell containing the amount by which the instalment increases annnually (ie 3% in your example) TERM is the number of years (10 in your example) APR is the annual growth rate (8% in your example) To enter the formula as an array formula hold down the Control+Shift keys when entering it. In the formula bar the formula should be displayed surrounded by {curley brackets} to show that it is treated as an array formula, thus: {=SUM(INITIAL*(1+INCREMENT)^(ROW(INDIRECT("1:"&TER M))-1)*(1+APR)^(TERM-ROW(I NDIRECT("1:"&TERM))))} (But you do not enter the curley brackets) I strongly recommend that you test that this produces the desired result using test data. -- Return email address is not as DEEP as it appears "Joe B." wrote in message ... Does anyone have a formula that will figure the Future Value of an investment where the payments are steadily increasing each period? For Example: An investment offers an 8% annual yield over a 10 year period. I would like to pay $1000 the first year and then increase my payment by 3% each year to year 10. I know I can do it with a For loop, but is there a simple formula to use for this? Any help is greatly appreciated. |
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