Calculate in Today's Money?

[Rick B]

I have a spreadsheet that lists the estimated balance in a savings plan each
year for the next 25 years. I also have estimated the rate of inflation at
3.5%. Can anyone tell me what formula I would use to display the balance in
"today's money"?

Thanks!

Rick B

 

[Rick B]

Okay, I think I figured it out...

=F7/(1+((B7-$B$5)*$K$4))


Where F7 is my ending balance. B7 is the current year. B5 is the starting
year. K4 is my interest rate.


Does this work? The numbers look realistic.


Thanks

Rick B