Compounding Increase

[kiwiora]

Hi,

I have an amount which needs to be compounded yearly, but only reporting each 5 year term (for 20 years). I can obviously create a field for each year and only report back those 6th, 11th and 16th year, but am wondering if there's a cleaner way of doing it.

AS an example:

The base is [color:blue]$10,000, the percent increase is [color:blue]5% annually [color:blue](<

[color:red]Rent01 = $10,000

Rent02 = Rent01 + 5%

Rent03 = Rent02 + 5%

Rent04 = Rent03 + 5%

Rent05 = Rent04 + 5%

[color:red]Rent06 = Rent05 + 5%

Rent07 = Rent06 + 5%

Rent08 = Rent07 + 5%

Rent09 = Rent08 + 5%

Rent10 = Rent09 + 5%

[color:red]Rent11 = Rent10 + 5%

Rent12 = Rent11 + 5%

Rent13 = Rent12 + 5%

Rent14 = Rent13 + 5%

Rent15 = Rent14 + 5%

[color:red]Rent16 = Rent15 + 5%

Rent01, Rent06, Rent11, Rent16 must be separate end fields as they are exported out to merge with a word document.

TIA

[Vaughan]

Does the interest (5%) change each year?

[kiwiora]

no the 5% (whilst a data entry field) remains the same for the life of the term (i.e 20 years).

Edited August 25, 2008 by Guest

[Søren Dyhr]

Base_Amount*1,05^5 for the first field beyond Base_Amount

Base_Amount*1,05^10 ... second field

Base_Amount*1,05^15 ... third field

Base_Amount*1,05^20 ... the last field

--sd

[kiwiora]

Thanks but I can't get that to work :

I understand you're using ^ (power of) but I can't work out why you have the comma/05

I attach the file example.

TIA

[Vaughan]

Try replacing the comma with a semicolon.

[comment]

It's a decimal comma - so replace it with a decimal point. The general formula is:

principal * ( 1 + rate )^nper

[kiwiora]

Cool, got it to work.

Thanks everyone.

Edited August 26, 2008 by Guest