Apologies, for this. I've not got my excel head on today and I need to fettle a formula
I've got an electricity bill which is £100 per year this year.
Its going to increase by 5% every year for the next 25 years.
How do I calculate my total payments over the next 5 year.
Please!
=£100*(1+i)^n
gives you the amount payable in any given year where i=5% and n=year
=100*(1.05^years-1)
BTW as a short cut for the sum of payment for the period n=1 to n then it's
=(((1^n)-(1+i)^n)/(-i))*100
=£100*(1+i)^ngives you the amount payable in any given year where i=5% and n=year
But I want to know the total payments for the 25 years.
I could add loop through those for each year, but is there a simpler way?
EDIT: Ooops, looking at other replies now
^ ahem 😉
And further simplified it's:
=((1-(1+i)^n)/(-i))*100
the first bit is a hangover for when you're discounting.
When I had a similar question Stoner pointed me here
[url= http://en.wikipedia.org/wiki/Future_value ]Future Value[/url]
Handy to refer to.
Thanks guys - sorted 🙂