Increasing rate of a value

[boboivan]

Hello there!

I have to pay 190000 $ in 180 months.
I need a formula to establish an incresing rate for every month.
I have a simulation on a paperwork, but I can't figure out the formula. On the paperwork the first rate in the first month is 875,21 $, the second one is 876.99 $, ..., and the last one in the last month is 1258,97 $.

Any help here please?

Thanks a lot.

[Kaper]

it looks like you have a geometric growth
876.99/875.21 is 1,0020338
if you take
875.21*1.0020338^0 = 875.21
875.21*1.0020338^1 = 876.99
875.21*1.0020338^2 = 878.77
875.21*1.0020338^3 = 880.56
875.21*1.0020338^4 = 882.35
....
875.21*1.0020338^179 = 1259.09
of course probably there is also an issue of rounding (I gave numbers rounded to 2 decimal digits)

so it is not exactly 1.00203338 (anyway the sum of rounded values is again not exactly 190000 but 190009,06)

But this is this type of mechanism.

[boboivan]

Thanks for the answer!

The formula should calculate the first and the last value.
Meanwhile I could figure out the formula, which is

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See attached the workbook for details!

[Kaper]

Sure it's easy, as you know the interest rate (you have not mentioned in the opening post)
You probably (or not?) noted that I2/12 (monthly rate is 0.002033333 - so my assesment that someone used 0.0020338 was pretty close :-)

PS. Please edit your post and delete quote - see why in forum rule 12 http://www.excelforum.com/forum-rule...rum-rules.html

[boboivan]

You're totaly right my friend!
Thanks again.

[Fotis1991]

Hello there.

boboivan

What Kaper try to explain to you is that.


Don't quote whole posts -- it's just clutter. If you are responding to a post out of sequence, limit quoted content to a few relevant lines that makes clear to whom and what you are responding.

Keep in your mind for future replies!