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Help on FV function in Excel 2007?
I am using the FV function to try to calculate what a cost will be after inflation. The problem asks what the cost of college will be 5, 6, 7, and 8 years from now given that the current cost of college is $15000 and the inflation rate each year is 4%. When I try to use the function, it keeps giving the the total cost through the entire period, but I don't want that. I want the individual cost each year.
Thank you for any help.
Excel 2010, sorry. Although, I don't believe it makes a difference in this case.
2 Answers
- ScrawnyLv 79 years agoFavorite Answer
Enter the present cost of $15000 in B1. In B2 enter =B1+B2*.04 and copy down to B9. This will calculate a 4% increase for each year starting at the present time. Enter the years from 1 to 8 in column A starting in A2. Start in A2 because the interest will not be on the cost of the present year. The table will look like this:
A.........B
......... $15,000.00
1...... $15,600.00
2..... $16,224.00
3..... $16,872.96
4..... $17,547.88
5..... $18,249.79
6.....$18,979.79
7..... $19,738.98
8..... $20,528.54
I put the space between row 4 and 5 (but not on the worksheet) to show how much the costs will increase before actually starting collect in 5 years.
Source(s): Experience