Increasing payment in future value formula? in Excel Worksheet Functions    |   |  Help   Search For:     In:   Office   Excel     Excel General Questions     Excel New users     Excel Application Errors     Excel Charts     Excel Programming     Excel Setup     Excel Worksheet Functions              AXPJESTER 5/6/2005 12:49 PM PST   Question   Can I use an increasing payment in a future value formula in 2002 Excel?     Was this post helpful to you?         Reply |   Top           Fred Smith 5/7/2005 4:10 PM PST   Answer   No you can't. FV assumes a constant payment. The formula to calculate the future value of a payment invested at i% increasing j% every period is: FV=PMT * ((1+i)^n - (1+j)^n) / (i-j) -- Regards, Fred Please reply to newsgroup, not e-mail "AXPJESTER" <AXPJESTER@discussions.microsoft.com> wrote in message news:6FFC5815-31CF-4D2C-B953-CE57B3939726@microsoft.com... > Can I use an increasing payment in a future value formula in 2002 Excel?     Was this post helpful to you?         Reply |   Top           Rob Kramer 8/3/2007 3:55 PM PST   Yes you can but you need to write it yourself. the Present Value function for increasing payments is: PV*(1+r)^n + pmt*((1+r)^n - (1+i)^n))/(r-i) + FV = 0 where: i = rate of pmt increase per period r = interest rate per period n = number of payment periods pmt = payment made each period FV = Future value after last paytment is made If payment is fixed, or i=0, then the formula becomes the familiar PV*(1+r)^n + pmt*((1+r)^n - 1)/r + FV = 0 as documented in the excel PV function Payment at month j is: pmt*(1+i)^j Let me know if you have any questions or comments. I would be glad to show how I derived this formula "AXPJESTER" wrote: > Can I use an increasing payment in a future value formula in 2002 Excel?     Was this post helpful to you?         Reply |   Top         Return to Microsoft Communities   Notify me of replies