Hi! I know there is probably a simple answer to this question, but I'm
having a hard time finding it.

I am trying to create a formula so that I can enter the following
information: Purchase date, purchase price and average appreciation (%) to
assess the current value based only on the appreciation. The appreciation
increases the property's value at the end of each year, so I need the sheet
to calculate the amount and compound it annually for the number of years the
property is owned. I hope this makes sense. If anyone has direction for
this, I'd greatly appreciate it.

Thanks a million!

On Sun, 15 May 2005 16:31:02 -0700, Mar wrote:

Hi! I know there is probably a simple answer to this question, but I'm
having a hard time finding it.

I am trying to create a formula so that I can enter the following
information: Purchase date, purchase price and average appreciation (%) to
assess the current value based only on the appreciation. The appreciation
increases the property's value at the end of each year, so I need the sheet
to calculate the amount and compound it annually for the number of years the
property is owned. I hope this makes sense. If anyone has direction for
this, I'd greatly appreciate it.

Thanks a million!

You can look at the FV worksheet function:

=FV(appreciation,NumYears,0,purchase_price)

This will give a number with the sign opposite to that of the sign of
purchase_price, so you may want to add a negative sign someplace.

The basic formula is:

=purchase_price*(1+appreciation)^NumYears

Depending on exactly when you book the appreciation, you might compute NumYears
as

=DATEDIF(purchase_date,valuation_date,"y")




--ron

Ron-

THANK YOU VERY MUCH! This was so helpful! I really appreciate it. :)

Martha

"Ron Rosenfeld" wrote:

On Sun, 15 May 2005 16:31:02 -0700, Mar wrote:

Hi! I know there is probably a simple answer to this question, but I'm
having a hard time finding it.

I am trying to create a formula so that I can enter the following
information: Purchase date, purchase price and average appreciation (%) to
assess the current value based only on the appreciation. The appreciation
increases the property's value at the end of each year, so I need the sheet
to calculate the amount and compound it annually for the number of years the
property is owned. I hope this makes sense. If anyone has direction for
this, I'd greatly appreciate it.

Thanks a million!

You can look at the FV worksheet function:

=FV(appreciation,NumYears,0,purchase_price)

This will give a number with the sign opposite to that of the sign of
purchase_price, so you may want to add a negative sign someplace.

The basic formula is:

=purchase_price*(1+appreciation)^NumYears

Depending on exactly when you book the appreciation, you might compute NumYears
as

=DATEDIF(purchase_date,valuation_date,"y")




--ron

On Tue, 17 May 2005 10:44:20 -0700, Mar wrote:

Ron-

THANK YOU VERY MUCH! This was so helpful! I really appreciate it. :)

Martha

Glad it worked. Thank you for the feedback.

--ron