Hi I am working on putting together an excel formula that will allow me produce the correct constant return number which will allow me to reach a fixed end value.
I have a fixed spending stream & beginning value and want to figure out what constant return will get me to my prespecified end value.
Beginning Value: $100
Each year do $10 spending growing at 3% per year... so 10, 10.3, 10.609, etc.
I need a formula that will give me the constant return I need to have for the end value to equal $200 in year 20.
Year 0 = 100
Year 1 = Year 0 Value-(SpendingYear1-constant return*Year 0 Value)
Year 2 = Year 1 Value-(SpendingYear2-contstant return*Year 1 Value)
Year 20 = 200