excel how do I calculate income indexed each year for 15 years

[Guest]

What Iam trying to calculate is I have income on a monthly basis say 300$ and
it is paid monthly and each year the monthly payment is is increased by the
rate of inflation, say 2.5% and this is over 15 years. Can anyone help>> Many
thanks Zapie

 

[Guest]

You could use compund interest calculation:

Annual income $3600 increased by 2.5% over 15 years

3600*(1.05)^15 (1.05 to power 15)

Enter formula in a cell:

=3600*POWER(1.05,15)

or

a1: 3600
b1=2.5%
c1=15 years

in d1 put =A1*power(1+B1,C1)

 

[Guest]

In my previous reply 1.05 should be 1.025 (for 2.5%).