4 Replies Latest reply: Jun 4, 2012 5:46 AM by spires
Level 1 (0 points)

Hi

I want to work out how to increase a number (profit) by 25% each year.

I have my starting figure in cell D4   =   £50,000

If increase by 25% the following year:

50,000 * 0.25 + 50,000

so:

SUM(D4*.25+D4)

Now, the year after I now need to work out, the increase of £75000 by .25%

SUM(D4*.25+D4)*.25+SUM(D4*.25+D4)

This is how i'm doing it, but going up 5 years is giving me the incorrect results.

Is there an easy way to do this ?

Thanks

• ###### 1. Re: Help with a function
Level 6 (13,620 points)

You can make a table like:

B3=B2*(1+\$C\$2/100)

select B3 and fill down.  You can, then, use these yearly numbers any way you like.

You can also use another method:

In this case I am using the first column to indicate the year after some starting year, cell B1 to be the starting profit (in year 0), and cell C1 to be the yearly increase:

D1=\$B\$2*((1+\$C\$2/100)^A2)

select D1 and fill down

• ###### 2. Re: Help with a function
Level 1 (0 points)

Hi

Looks great, however, unfotunatly, it need to be on one row.

As I have lots of other calcuations; wages, expenses etc that also need an incease.

So looking to keep the table un cluttered.

Also, what dose ^ mean ?

Thanks

• ###### 3. Re: Help with a function
Level 6 (13,620 points)

"^" means "to the power of".  so 10^0 = 1, 10^1 = 10, 10^2 = 100

From the demonstrations I provided what is it you need to use the formulas in your table (which you have not shown)?  Conceptually the 2nd method demonstrates computing the profit based on:

- an initial amount

- a yearly increase percentage, and

- the year

The only thing that that changes when you fill down in the formula is the year (in column A).  I did this so you could see how the result changes with year.

• ###### 4. Re: Help with a function
Level 1 (0 points)

ok, Thanks

I'll give it a go.