calulation
 

First, thank you for looking at this post and any and all help you can offer.

Is there a formula to calculate escalation?
Say I have a price of $43875.00, the average increase is 5.0% per year and I
want to escalate the 43875.00 over a 2 year period. I'm using this formula.
=FV(E2,D2,,-I2)
E2=.05
D2=2 YEARS
I2= $43875.00 2010 COST
The result is $47704.38

calculator comes up with;
2010=$43875.00
2011 INCREASE@ 5%=$2195.75
2011 SELLING PRICE=$43875.00+$2195.75=$46.68.75
2012 INCREASE@ 5%=$2303.44
2012 SELLING PRICE=$46.68.75+$2303.44
=$48372.19

What am I doing wrong?

Thank you for your help
Ron

calulation
 

"Surazal" <ok wrote:
Is there a formula to calculate escalation?

Looks like you already know the answer: FV.


"Surazal" <ok wrote:
=FV(E2,D2,,-I2)
E2=.05
D2=2 YEARS
I2= $43875.00 2010 COST
The result is $47704.38

calculator comes up with;
2010=$43875.00
2011 INCREASE@ 5%=$2195.75
2011 SELLING PRICE=$43875.00+$2195.75=$46.68.75
2012 INCREASE@ 5%=$2303.44
2012 SELLING PRICE=$46.68.75+$2303.44
=$48372.19

What am I doing wrong?

I have not figured that out yet. But =FV(5%,2,,-43875) does indeed result
in about 48372.19, just as the manual calculation does.

Are any of the cells E2, D2 and/or I2 calculated; that is, a formula, not a
constant?

There "error" might be due to format rounding. But so far, I have not come
close enough to 44704.38 by changing just one of the variables.