Results 1 to 3 of 3

Math Help - Future Value @ incr. rate

  1. #1
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,161
    Thanks
    70

    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?
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    May 2010
    Posts
    1,030
    Thanks
    28

    Re: Future Value @ incr. rate

    If an approximation will do, try the continuous version - then you can throw some integration at it.
    Last edited by SpringFan25; April 12th 2012 at 11:18 AM.
    Follow Math Help Forum on Facebook and Google+

  3. #3
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,161
    Thanks
    70

    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
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Future Value
    Posted in the Algebra Forum
    Replies: 2
    Last Post: March 7th 2011, 11:14 PM
  2. future value
    Posted in the Business Math Forum
    Replies: 4
    Last Post: July 28th 2010, 01:34 AM
  3. Present Value, Future Value, Rate
    Posted in the Business Math Forum
    Replies: 35
    Last Post: June 16th 2007, 06:52 PM

Search Tags


/mathhelpforum @mathhelpforum