# Excel - Escalation Formula

Asked By JoeGiede on 30-May-08 07:55 AM
```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 \$1,000, the average increase is 4.5% per year and I
want to escalate the 1000 over a 10 year period. Could this be done? I'm
trying to find the result for each year and then separately for year 10.

Joe```

Marcel replied on 30-May-08 08:33 AM
```assuming

a1 = 1000
b1 = 4,5%
c1 = # of years (1,2..10)
d1 =(a1*(1+b1)^c1)

change c1 to see the result as you need

hth
--
regards from Brazil
Marcelo```
JoeGiede replied on 30-May-08 08:54 AM
```Thank you for the formula. It does just what I need. How does the formula
know to compound?```
Dana DeLouis replied on 30-May-08 09:13 AM
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b2U=```
JoeGiede replied on 30-May-08 09:35 AM
```Thank you for the formula it works perfectly, I appreciate your help and
response. One question, why do you use a -1000? I used the formula without it
and I received a negative answer for the value but why does this formula
require a -1000?

Joe```
Don Guillett replied on 30-May-08 10:40 AM
```it is amazing what you can find in the help index for FV. Look there.

--
Don Guillett
Microsoft MVP Excel
SalesAid Software
dguillett1@austin.rr.com```