FV & dynamic payment

[Emma Hope]

Hi All,

I want to do the following, £100,000 grows at 9% per year, 12% per year is
paid out for 10 years, what is the final value?

I know i can build this up over a number of cells but this is a very small
part of a very large and complicated set of formulae, so i need a one cell
answer, please can anyone help.

Thanks
Emma

 

[Shane Devenshire]

Hi,

There is no simple function for this, but you should look at FV. A few
points - 12% per year as yearly payouts or as monthly payouts? Most things
are done on a monthly basis. 12% of that current years value or the ending
value? Is the 12% removed before the 9% is calculated or the reverse?

 

[Emma Hope]

Hi Shane,

If you note the subject of my post, i know about the FV formula & the
associated functions.

I also know, you can't use a variable payment in this formula as standard, i
was hoping someone would have a workaround.

As for the other questions, my final function is going to be a lot more
complicated, sometimes each will be daily, weekly, quarterly etc, and it is
quite possible that the growth rate & payment will be on different periods.

All i'm trying to do is work out, if anyone has got any kind of workaround
that means i can use a percentage as the payment, the rest i can sort out
afterwards.

Emma

 

[joeu2004]

I want to do the following, £100,000 grows at 9% per
year, 12% per year is paid out for 10 years, what is
the final value?

Take a look at the first year to be sure I understand you correctly.
After the first year, we have: 100000*(1+9%)*(1-12%) = 95920. Right?

If so, then:

=fv((1+9%)*(1-12%)-1,10,0,-100000)