Account Accurals

[Guest]

I'm trying to calculate my future pension benefit. The account earns
interest and compensation credits annually.

The interest function I can project, but how do I include the annual
compensation credits which are based on my age on December 31 each year.

Example: Age 20-24, it's 2% of my annual earnings, Age 25-39 is 3%, Age
40-44 is 4%, etc.

Is there a function to handle this or must I create a row for each year,
then duplicate the formula for each row until my retirement age?

 

[Myrna Larson]

The built-in function FV, has a Payment argument, but it assumes the payments
are equal. I your case, they are age- and earning-dependent. I think you need
to set up the equivalent of an amortization table where you enter the starting
balance and for each year calculate the interest earned and add the
compensation credits.

 

[Guest]

Thanks Myrna. That's how I handle it today, but I was wondering if I was
missing a possible formula to calculate it instead.