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
dking_wriAsked:
Who is Participating?

[Product update] Infrastructure Analysis Tool is now available with Business Accounts.Learn More

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.

jppintoCommented:
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
dking_wriAuthor 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
byundtMechanical EngineerCommented:
If $1433.82 is the answer, try using the FV function:
=FV(0.03,21,-A2)

Brad
0

Experts Exchange Solution brought to you by

Your issues matter to us.

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

Start your 7-day free trial
PMI ACP® Project Management

Prepare for the PMI Agile Certified Practitioner (PMI-ACP)® exam, which formally recognizes your knowledge of agile principles and your skill with agile techniques.

Rob HensonFinance 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
Rob HensonFinance AnalystCommented:
Apologies, just tried that and I get the $90.31, the value in year 20, not the total.
0
dking_wriAuthor Commented:
Brad,

Thanks for the tip on using the FV function. It worked perfectly!  

David
0
It's more than this solution.Get answers and train to solve all your tech problems - anytime, anywhere.Try it for free Edge Out The Competitionfor your dream job with proven skills and certifications.Get started today Stand Outas the employee with proven skills.Start learning today for free Move Your Career Forwardwith certification training in the latest technologies.Start your trial today
Microsoft Excel

From novice to tech pro — start learning today.