Looking for a formula about cummulative amount that includes an inflation rate
Hi,
I have been doing a calculus that takes many cells in excel and I'm looking to use a formula instead.
What I have so far is, I take the amount I spend (let's say on gas) a year.
So for the first year I have 2500.
Then the second year I add 5% price hikes I get 2625.
So the cumulative for the 2 year is 5125 (2500+2625)
Same thing for the 3rd year = 2756,25 /cumulative 7881,25...
And so on up until 10 where I get 3878,32$ /cumulative 31444,73$
It takes 10 cells to add all this
I know that the formula for inflation on a fix amount is : Future Value = PV * (1 + i)^n
PV = Present value but that doesn't count all amount spent on the 2nd year up to the 10th year...
What would be the formula for that?
tX!
I have been doing a calculus that takes many cells in excel and I'm looking to use a formula instead.
What I have so far is, I take the amount I spend (let's say on gas) a year.
So for the first year I have 2500.
Then the second year I add 5% price hikes I get 2625.
So the cumulative for the 2 year is 5125 (2500+2625)
Same thing for the 3rd year = 2756,25 /cumulative 7881,25...
And so on up until 10 where I get 3878,32$ /cumulative 31444,73$
It takes 10 cells to add all this
I know that the formula for inflation on a fix amount is : Future Value = PV * (1 + i)^n
PV = Present value but that doesn't count all amount spent on the 2nd year up to the 10th year...
What would be the formula for that?
tX!
ASKER
no that is what I already have... takes 30 cells... I would like a "formula" that would fit in 1 cell
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ASKER
Thanks guys!
I guess the best formula is the FV formula fo Shums which has been develop by Excel exactly for this.
@Rgonzo1971: your formula also works but I will need to take the time to understard what (ROW(A1:A10)-1) stands for since they are pointing to empty cells... so both are good but the FV would be more precice. I also changed the values to weeks (52) and divided my yearly interest rate by 52 to make it work... all great! thanks guys
I guess the best formula is the FV formula fo Shums which has been develop by Excel exactly for this.
@Rgonzo1971: your formula also works but I will need to take the time to understard what (ROW(A1:A10)-1) stands for since they are pointing to empty cells... so both are good but the FV would be more precice. I also changed the values to weeks (52) and divided my yearly interest rate by 52 to make it work... all great! thanks guys
ASKER
Thanks guys!
I guess the best formula is the FV formula fo Shums which has been develop by Excel exactly for this.
@Rgonzo1971: your formula also works but I will need to take the time to understard what (ROW(A1:A10)-1) stands for since they are pointing to empty cells... so both are good but the FV would be more precice. I also changed the values to weeks (52) and divided my yearly interest rate by 52 to make it work... all great! thanks guys
I guess the best formula is the FV formula fo Shums which has been develop by Excel exactly for this.
@Rgonzo1971: your formula also works but I will need to take the time to understard what (ROW(A1:A10)-1) stands for since they are pointing to empty cells... so both are good but the FV would be more precice. I also changed the values to weeks (52) and divided my yearly interest rate by 52 to make it work... all great! thanks guys
You're Welcome Phil! Glad we're able to help
Philjans_Cumulative-Formula.xlsx