Create a Excel Formula - Yearly increasing Annuity
Budget: ₹600 – ₹1,500 INR
FV function provides a future value of an investment with periodic payments and investment growth rate.
The inputs are:
RATE - The growth in % for each period
NPER - Number of Equated Payments or Number of Payments
PMT - Amount of Payment Per Period
PV - Any Initial Lumpsum Payment
TYPE - 0 for payment at end of period, 1 for payment at start of period
If I want a future value of an investment with increasing payments by X% per period the formula I currently use is:
= (12*((1+RATE)^(YEARS)-(1+PercentOfIncreaseInAmount)^(YEARS)))/(RATE-PercentOfIncreaseInAmount)*PMT
Inputs in this formula are:
RATE - The investment returns/growth in % for each period
YEARS - The number of years to Future Value
PercentOfIncreaseInAmount - Percentage of increase in amount that will be invested EVERY MONTH.
PMT - Amount of first payment
*Latex Format of this formula attached
Now I need a one line Excel formula that would calculate future value if I keep increasing EVERY 13th PMT by X%.
Paraphrasing: I need to know the future value of an investment where I make monthly payments but keep increasing the monthly payment by X% EVERY YEAR.
Inputs are:
RATE - The growth in % every Year
PER - Number of Years the Payments will be made
PMT - Amount of Payments that will be made every month for 1st year
PMTYrlyGrowth - Percentage increase in PMT every YEAR
Of course the Future Value could be calculated by making a schedule or a table, but where's the fun in doing it?
The inputs are:
RATE - The growth in % for each period
NPER - Number of Equated Payments or Number of Payments
PMT - Amount of Payment Per Period
PV - Any Initial Lumpsum Payment
TYPE - 0 for payment at end of period, 1 for payment at start of period
If I want a future value of an investment with increasing payments by X% per period the formula I currently use is:
= (12*((1+RATE)^(YEARS)-(1+PercentOfIncreaseInAmount)^(YEARS)))/(RATE-PercentOfIncreaseInAmount)*PMT
Inputs in this formula are:
RATE - The investment returns/growth in % for each period
YEARS - The number of years to Future Value
PercentOfIncreaseInAmount - Percentage of increase in amount that will be invested EVERY MONTH.
PMT - Amount of first payment
*Latex Format of this formula attached
Now I need a one line Excel formula that would calculate future value if I keep increasing EVERY 13th PMT by X%.
Paraphrasing: I need to know the future value of an investment where I make monthly payments but keep increasing the monthly payment by X% EVERY YEAR.
Inputs are:
RATE - The growth in % every Year
PER - Number of Years the Payments will be made
PMT - Amount of Payments that will be made every month for 1st year
PMTYrlyGrowth - Percentage increase in PMT every YEAR
Of course the Future Value could be calculated by making a schedule or a table, but where's the fun in doing it?