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.

Thank you for your help
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
Thanks in advance for your feedback.
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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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