Hi Guys,
What I want to be able to do is to calculate a compounded value from a set of variables in order to calculate a lifetime contract value. The variables are:-
Contract Value - CV
Number of Years Remaining on Contract - YR
Annual Interest Uplift% - AU
To give an example, a customer's contracted value is £10,000 (CV) the Annual Uplift is 6%, this is simple to calculate for year one, the answer is £10,600. The second year is £10,600 + 6% = £11,236 and the third year would be £11,236 + 6% = £11,910.16 - so the LCV (assuming three year contract) is £10,600+£11,236+£11,910.16 = £33,746.16
I have scoured the net and there are lots of solutions that will add compounded interest to the initial amount over a number of periods, but I have not found where I can set a number of years, give a contract value and an annual uplift and get the LCV - Help Please!
Regards,
Tim
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