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Future Value with Interest the compounds every 3 years
I'm working on a trying to set up a formula for services where the cost increases 6% every 3 years over the next 15 years. The standard FV function doesn't seem to be the right formula because its based on annual compounding.
Anyone have a good formula for what I'm trying to achieve? See my data below: Year 1 $100,000.00 Year 2 100,000.00 Year 3 100,000.00 Year 4 106,000.00 6% increase over prior year Year 5 106,000.00 Year 6 106,000.00 Year 7 112,360.00 6% increase over prior year Year 8 112,360.00 Year 9 112,360.00 Year 10 119,101.60 6% increase over prior year Year 11 119,101.60 Year 12 119,101.60 Year 13 126,247.70 6% increase over prior year Year 14 126,247.70 Year 15 126,247.70 TOTAL $1,691,127.89 Thanks...AJ |
Quote:
A = 100,000 i = 6% = 0.06 x = 1+i = 1.06 n = 15 p = 3 t = 15/3 = 5 FV = A * p * (x^t - 1)/(x - 1) FV = 100,000 * 3 * (1.06^5 - 1)/(1.06 - 1) FV = 300,000 * (1.3382255776 - 1)/0.06 FV = 300,000 * 0.3382255776/0.06 FV = 300,000 * 5.63709296 FV = 1,691,127.89 "There exist a closed-form formula for just about anything out there in the Universe" - A Village Idiot from Punjab |
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