formula, Help!!!

  • Thread starter Thread starter Guest
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Guest

can anyone help? I'm trying to do the following,
I've calculated wage levels based on current salary plus 3% per year for the next ten years, no problem there!.
what i now want to do is take 5% from year ten and back calculate what the year on year salaries would be over the same period starting from the same base-line. is there a formula that will do this?
your help would be gratefully accepted.
 
Just divide the amount by 1 + inflation rate, that is

= K1/(1+3%)

--

HTH

Bob Phillips
... looking out across Poole Harbour to the Purbecks
(remove nothere from the email address if mailing direct)

martin davies said:
can anyone help? I'm trying to do the following,
I've calculated wage levels based on current salary plus 3% per year for
Click to expand...
the next ten years, no problem there!.
what i now want to do is take 5% from year ten and back calculate what the
Click to expand...
year on year salaries would be over the same period starting from the same
base-line. is there a formula that will do this?
 
martin davies said:
can anyone help? I'm trying to do the following,
I've calculated wage levels based on current salary plus 3% per year for
Click to expand...
the next ten years, no problem there!.
what i now want to do is take 5% from year ten and back calculate what the
Click to expand...
year on year salaries would be over the same period starting from the same
base-line. is there a formula that will do this?
your help would be gratefully accepted.
Click to expand...

Are you saying that you want to reduce the 3% such that, when applied for 10
years, you will end up with a figure that is 5% less than you got by
applying 3%?
For example, starting with 100 in year one increased at 3% per year will
give (in round figures) 130 in year 10.
5% less than this is 124.
What is the % increase each year for 10 years that will turn 100 into 124?

If so, you can find this (for any one particular salary - it is the same
percentage for them all) using Goal Seek on the Tools menu. The result is
approximately 2.41438%
 
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