Time Value of Money

[Guest]

I have a number which increases each year by 3% at a certain date. What cell
entry can I input to have this number increase automatically per year
dependant upon that date.

For instance, I have a # 2532, which increases by 3% every year on September
2. How can I plug this date into the equation so that the # automatically
increases every September 2 in my spread sheet?



Thank you,
Philip

 

[Guest]

The key thing is a starting date and a starting amount. Also, does the
increase get compounded or is it always 3% of 2532? Finally, does the
increase accrue over the course of a year, or is it ONLY on Sep.2

Let's say this started on September 2, 2004, and that the increases
compound. Further, nothing accrues, the whole increase is slabbed on only on
Sep.2

In cell A2 goes the starting date, 9/2/04
In B2 put the rate of annual increase: 3%
In cell C2 goes the starting amount: let's say it's the 2532
In cell D2 use the formula

=(1+B2)^DATEDIF(A2,TODAY(),"y")*C2

for an explanation of the datedif() function, see Chip Pearson's writeup at

http://www.cpearson.com/excel/datedif.htm