4 Replies Latest reply: Jun 4, 2012 5:46 AM by spires
spires Level 1 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
    Wayne Contello Level 6 Level 6 (13,620 points)

    You can make a table like:

    Screen Shot 2012-06-04 at 6.56.03 AM.png

     

    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:

    Screen Shot 2012-06-04 at 7.00.01 AM.png

    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
    spires Level 1 Level 1 (0 points)

    Hi

     

    Thanks for your help

     

    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
    Wayne Contello Level 6 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
    spires Level 1 Level 1 (0 points)

    ok, Thanks

    I'll give it a go.