# Which financial function will give me the highlighted value in the attached spreadsheet

Hello,

I'm not certain how to phrase my question so I'm attaching an example instead. If a current expense increases by 3% per year over the next 20 years how much total expense will be incurred in total?

In the attached Excel file I've mocked up the example. I used the FV() function to determine the expense for year 20, but I want to calculate the sum of the total 20 year's expense (1433.82 in cell A23) using a function in a single cell.  Any ideas?

Thanks!
David

Expense-Increase.xlsx
###### Who is Participating?

x
I wear a lot of hats...

"The solutions and answers provided on Experts Exchange have been extremely helpful to me over the last few years. I wear a lot of hats - Developer, Database Administrator, Help Desk, etc., so I know a lot of things but not a lot about one thing. Experts Exchange gives me answers from people who do know a lot about one thing, in a easy to use platform." -Todd S.

Commented:
Please take a look at my article about financial functions in Excel:

http://excel-user.blogspot.com/2011/02/excel-financial-functions.html

jppinto
0
Author Commented:
Hi Jppinto,

Thanks for your link, but I'm not finding exactly what I need. I used the FV() function in my spreadsheet to calcuate what the expense would be with a 3% annual increase after 20 years. But I'm looking for the sum of the expense amount over the 20 year period. Do you know which function will provide that?

Thanks,
David
0
Mechanical EngineerCommented:
If \$1433.82 is the answer, try using the FV function:
=FV(0.03,21,-A2)

0

Experts Exchange Solution brought to you by

Facing a tech roadblock? Get the help and guidance you need from experienced professionals who care. Ask your question anytime, anywhere, with no hassle.

Finance AnalystCommented:
Simple mathematical function would be, where base value is in A2:

=A2*1.03^20

1.03 is the same as 103% ie 1 plus 3%
The ^ is the same as "to the power of".

So formula equates to Base x 1.03 x 1.03 x 1.03 etc, repeated 20 times.

Regards
Rob H

0
Finance AnalystCommented:
Apologies, just tried that and I get the \$90.31, the value in year 20, not the total.
0
Author Commented: