Hi, I'm looking for some help to set up a compound interest calculation on excel to plan for my children's school fees in the years to come. There are several elements to the calculation. The figures are notional. I have set up the attached spreadsheet
- £10,000 at 5% per year for 20 years.
- There would be different annual fees as these would differ depending on their school year. I have put these as "school fees 1 - 10" at notional amounts at 2024 prices. These annual fees would need to account for annual inflation (let's say 3%). So I'd need a formula that would calculate the fees rate at this inflationary rate for a given selected year.
Hi Andy,
To update the value with an inflation rate, try this formula:
E2*(1+5%)^(F2-YEAR(NOW()))
E2 is your initial value, F2 is the year selected.
Thank you! That's really helpful.
Are you able to look at a similar calculation for the compound interest starting at an initial 10k?
Try this in K2:
=$K$1*(1+3%)^(ROW(A1))
K1 is the initial value
