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Personal Finance (Not Investing) • Calcuating real return with contribution using a spreadsheet

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Requesting a bit of math help. Let's say I want to calculate the future value of an investment, In Excel, I could use the FV function and get

Code:

FV (rate, number of period, payment, present value)
Let's say you have an investment of $10K a 5% return over 8 years would be

Code:

FV(10%, 8, 0, -10000) = $21,435.89
Let's say I just want to know the future value in today's dollar, I can just reduce the rate by the inflation, so let's say there is a 3% inflation, then I would do a

Code:

FV(7%, 8, 0, -10000) = $17,181.86
Let's say I just want to know the future value in today's dollar with a contirbution that increase by inflation every year, I could

Code:

FV(7%, 8, -100, -10000) = $18,204.84
But what if I want to do the present value in future dollars with a contribution that is increased by inflation?

Statistics: Posted by gavinsiu — Sat Aug 03, 2024 5:42 pm — Replies 4 — Views 361



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