Working out an increase in value.

[Adnil]

Hi

I really need to find out how to work out the value of an item over a period of time... with a continuous interest rate.

for example:
Value of the item is £150,000.
Interest rate is 2.9%
over a 30 year period.

I can only find how to get the rate of growth... not haw to caluculate the end value. (i can do it as a table... but I need to do it in excel as an equation.)

Many thanks for your help.

Linda

 

[bensonsearch]

Hi

I really need to find out how to work out the value of an item over a period of time... with a continuous interest rate.

for example:
Value of the item is £150,000.
Interest rate is 2.9%
over a 30 year period.

I can only find how to get the rate of growth... not haw to caluculate the end value. (i can do it as a table... but I need to do it in excel as an equation.)

Many thanks for your help.

Linda

the value of the item or the value of 150,000 plus interest (amount total)?

if value no way to do eg

a house cost 10 dollars

i pay interest over 30 years of 30 dollars (yes i now these numbers are weird but make easy)

so total value of loan 40 dollars BUT the house could be worth more or even less depending on market...

 

[Adnil]

Hi

The current value would be £150000 and i need the value in 30 years at a growth rate of 2.9%.

Or should i say i need to know how to do an equation to give me the answer.

I hope that explains it clearer!

Thanks Linda

 

[bensonsearch]

assusming 150,000 (or starting value) is in A1
the amount of years is in A2 (30)
and the interest rate in A3 (2.9)

=(((A1/100)*A3)*A2)+A1

this works out the interest of a year then multiplies by the number of years and adds to original amount

answer = 280,500