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an Excel formula problem calculate growth of an investment,

Resolved Question:

an Excel formula problem:
calculate growth of an investment, with a regular/consistent gain each year, but with a exspense deduct every year. Example: invest $1000, it grows 12%, but then there is a 2% exspense deducted each year. Does Excell have a formula to calculate this?
Have Excel 2010, and Win 7.
Submitted: 5 years ago.
Category: Networking
Expert:  John D replied 5 years ago.

Hi,

 

So isn't that the same as net growth of 10% (i.e. 12%-2%)

 

 

 

Customer: replied 5 years ago.

Your answer// net growth, 12$ an -@% NO not the same. add 12%, then subtract 2% of that number. the result becomes the $$ invested next year, and begin again

Expert:  John D replied 5 years ago.

Not sure I understand what you are trying to say!

 

I never said anything about 12$. If you read my reply I typed the arithmetic expression for this statement

12 percent less 2 percent equals 10 percent

 

 

 

 

Customer: replied 5 years ago.
the correct answer is $1097.60
Expert:  John D replied 5 years ago.

I wish I have crystal ball with me today so it could tell me the number of years you are applying this to... lol

 

How many years is this answer calculated for?

 

 

Customer: replied 5 years ago.
that would be for one year
Expert:  John D replied 5 years ago.

Thanks.

 

Ok here you go

 

=FV(0.12,1,,-1000*0.98)

 

(just copy the above formula and paste it as is into any cell)

 

Hope this is ok. Let me know if you have any questions, and thank you for clicking Accept if you are satisfied with the solution

John D and other Networking Specialists are ready to help you
Customer: replied 5 years ago.

first, add .12% then subtract 2% I am using Excell, enter .2% and 12%

I will leave *.98 to those better at math.

Expert:  John D replied 5 years ago.

Thanks

 

the 0.98 is (1-0.02) or (100%-2%). So you can replace the 0.98 in the formula by

 

=FV(0.12,1,,-1000*(100%-2%))

 

which will give you the same result

 

 

 

 

John D and other Networking Specialists are ready to help you
Customer: replied 5 years ago.
same result for at the end of ten years? or for one year?
Expert:  John D replied 5 years ago.

 

 

Ok this is the modified formula which returns the growth of a $1000 investment over a period of 10 years at 12% annual interest and 2% expense deduction

 

=FV(0.12,10,,-1000*0.98)

 

Please try it and let me know if you have any questions

 

 

 

John D and other Networking Specialists are ready to help you
Customer: replied 5 years ago.

Could not get the FV function to work right, $3107.x; doing year, I get $3355.63

using your version, guess I m essed up, that was way off. progress comes stages

Expert:  John D replied 5 years ago.

Ok could you give me the following values

 

1- Invested amount

2- Annual % growth

3- Number of years invested

4- Expenses percentage

 

 

 

Customer: replied 5 years ago.

$1000, 12% gro each year; 10 years; expenses each year 2%

what are we doing up so late? now 4 am for you

 

 

Expert:  John D replied 5 years ago.

lol... no I'm in California, 9:40 pm

 

one moment...

 

 

Expert:  John D replied 5 years ago.

Ok using this formula:

 

=FV(0.12,10,,-1000*0.98)

 

the result is

 

$3,043.73

 

 

John D and other Networking Specialists are ready to help you

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