Future Value @ incr. rate

Code:

`YR RATE INTEREST BALANCE`

0 1000.00

1 .03 30.00 1030.00

2 .033 33.99 1063.99

3 .0363 38.62 1102.61

4 .03993 44.03 1146.64

Above is an example of future value of an amount at an incresing rate:

$1000.00 at rate 3% 1st year, then the rate increasing by .10 each year.

As example, year2 rate = .03 * 1.10 = .033

What is the formula to calculate the future value in such circumstances?

Re: Future Value @ incr. rate

If an approximation will do, try the continuous version - then you can throw some integration at it.

Re: Future Value @ incr. rate

Thanks. But to be exact, only a "looper" will do it, I guess:

a=1000:r=.03:i=.10:n=4

FOR y = 1 TO n

k = a * r [this period's interest]

a = a + k [this period's resulting principle]

PRINT y,k,a

r = r * i [update rate]

NEXT y