multiplying result itself number

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Multiplying a result by itself a number of times | Excel forum

resolvedResolved · Urgent Priority · Version 2007

Chris has attended:
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Multiplying a result by itself a number of times

Hi,
Having problems with getting the right formula. I'm doing a variance analysis at work, and the result of my year 1 variance is£300. In year 2, this variance will occur again but also increase with the power of inflation @ 3.5%, hence be £310.50. The same will happen in year 3, but obviously it becomes £310.50 * (1+3.5%) = £321.37. This gives my total 3 years variance of £931.87 (£300 + £310.50 + £321.37). My variances last for 10 years.

So what I need is a formula that will multiply the result on itself by 1+ the inflation, over a set number of years, with the 2 factors being:
- the original £300 (say in cell A2)
- the inflation 3.5% (say in cell B2)

I've done it on a spreadsheet by creating 10 columns, having Yr 2 being Yr * (1+3.5%) and dragging it over the 10 columns(years) which is the right answer, but I need a formula that will return that same total but in just 1 cell (spreadsheet & data constraints!!!!)
Thanks in advance

Edited on Fri 13 May 2011, 16:37

RE: Multiplying a result by itself a number of times

Hi Chris,

Suppose your inflation rate is in a named cell called INFL and your year 0 value is in a5. In b5, use the following:

=a5*(1+INFL)^10

^ means raise to the power. Brackets get calculated 1st, then power, then multiply and addition way down the list, so you do need the brackets.

I was starting at a base year and then going forward for 10, reading your example you may only be going forward 9 years.

Hope this helps - otherwise get back to me!

Clare

Fri 20 May 2011: Automatically marked as resolved.


 

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