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Increasing payment in future value formula?
Can I use an increasing payment in a future value formula in 2002 Excel?

#2




Answer: Increasing payment in future value formula?
Yes, you can use an increasing payment in a future value formula in Excel 2002.
The formula you would use is called the FV function, which calculates the future value of an investment based on a series of regular payments and a constant interest rate. To include an increasing payment in the formula, you can use the PMT function to calculate the payment for each period. Here's an example of how to use the FV function with an increasing payment:
Remember to adjust the formulas as needed for your specific investment scenario, and to doublecheck your inputs and calculations to ensure accuracy.
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#3




No you can't. FV assumes a constant payment. The formula to calculate the
future value of a payment invested at i% increasing j% every period is: FV=PMT * ((1+i)^n  (1+j)^n) / (ij)  Regards, Fred Please reply to newsgroup, not email "AXPJESTER" wrote in message ... Can I use an increasing payment in a future value formula in 2002 Excel? 
#4
Posted to microsoft.public.excel.worksheet.functions




Increasing payment in future value formula?
Yes you can but you need to write it yourself. the Present Value function for
increasing payments is: PV*(1+r)^n + pmt*((1+r)^n  (1+i)^n))/(ri) + FV = 0 whe i = rate of pmt increase per period r = interest rate per period n = number of payment periods pmt = payment made each period FV = Future value after last paytment is made If payment is fixed, or i=0, then the formula becomes the familiar PV*(1+r)^n + pmt*((1+r)^n  1)/r + FV = 0 as documented in the excel PV function Payment at month j is: pmt*(1+i)^j Let me know if you have any questions or comments. I would be glad to show how I derived this formula "AXPJESTER" wrote: Can I use an increasing payment in a future value formula in 2002 Excel? 
#5




Before using this formula
PV*(1+r)^n + pmt*((1+r)^n  (1+i)^n))/(ri) + FV = 0 you should check for r==i, to avoid division by 0. If r==i, use PV*(1+r)^n + pmt*n*(1+r)^(n1) + FV = 0 
#6




You can also think of this as a graduated annuity. To get the fv first calculate the pv as follows:
pv = PV((1+r)/(1+g)1, n, pmt)/(1+g) fv = FV(r, n, 0, pv) where r = discount rate (interest rate) g = growth rate of the payments pmt = first payment amount n = number of payments 
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