how to calculate the total compounded salary for 5 years with an increment of 3% per year

[mart_mrexcel]

how to calculate the total compounded salary for 5 years with an increment of 3% per year in one formula. Thanks

example:

Current Salary is 1,000 with an increment of 3% every:

1st year 1,030 * 12 = 5,150 +
2nd year 1,061 * 12 = 5,305 +
3rd year 1,093 * 12 = 5,463 +
4th year 1,126 * 12 = 5,628 +
5th year 1,159 * 12 = 5,796
===================
Total 27,342

 

[AlanY]

deleted, misread your question

 

[Tasslehoff]

Hey,

I am assuming that you want to dynamically change the % of wage increase?

	A	B	C	D
1	Wage upgrade	3
2	Base Salary	1000
3	Salary	Months	Total
4	=b2+(b2*$b$1)	12	=a4*b4	Although you could just do a4*12 but that depends on how you want to visualize it
5	=b4+(b4*$b$1)	12	=a5*b5
6
7

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I hope this helps

best regards

 

[Tasslehoff]

I cannot edit my post, I misread the question too it seems... sorry

 

[Snakehips]

Not sure where 27342 comes from???

Do you mean total earnings of 65,621 ??

If so then that could be calculated using =SUM((1000*1.03^{1,2,3,4,5}))*12

Hope that helps.

 

[arthurbr]

Perhaps =SUM(5000*((1.03)^ROW(A1:A5))) entered as an array formula with Ctrl+Shift+Enter

Or eventually

=SERIESSUM(1,03;1;1;G1:G5) where G1:G5 contains the value 5000 in each cell

 

[Snakehips]

Using cell values then could be...

Excel Workbook
	A	B
1	Base Salary	1000
2	Years	5
3	Increase %	3
4	*	*
5	Cumulative Total	65620.92
Sheet1

 

[arthurbr]

Or, as per your example =5000*1.03*((1-POWER(1.03,5))/(1-1.03))

See https://en.wikipedia.org/wiki/Geometric_series for info on geometric series

 

[MickG]

Perhaps:-

=12000 *(1.03^6 - 1.03) /(1.03 -1)
= 65620.9

Proof:-

	A	B	C	D	E	F
1	Rate	Yearly Salary
2	1.03	12000
3
4	1	2	3	4	5	sum
5	=B2*$A$2	=A5*$A$2	=B5*$A$2	=C5*$A$2	=D5*$A$2	=SUM(A5:E5)
6	12360	12730.8	13112.724	13506.10572	13911.28889	65620.91861

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[B___P]

Try
=FV(0.03,5,-12*1000)
total is 63709,63