RichardS
Well-known Member
- Joined
- Feb 16, 2002
- Messages
- 761
Hi all.
My boss has just thrown me a curly one. Not quite sure which formula to use, and these financial ones confuse me at the best of times.
What he wants to know is, if we rent a building out for a fixed monthly rent for 21 years, and assuming various interest and inflation rates, how much would need to be paid in advance to achieve the same outcome.
Currently I have
=PV(-(C11+C12)/12,C9,C10)
where C11 has the inflation rate, C12 has the interest rate, C9 has the number of payments and C10 the regular monthly payment. The result looks kind of OK, but I'd like some confirmation.
Any assistance would be greatly appreciated.
TIA
Richard
My boss has just thrown me a curly one. Not quite sure which formula to use, and these financial ones confuse me at the best of times.
What he wants to know is, if we rent a building out for a fixed monthly rent for 21 years, and assuming various interest and inflation rates, how much would need to be paid in advance to achieve the same outcome.
Currently I have
=PV(-(C11+C12)/12,C9,C10)
where C11 has the inflation rate, C12 has the interest rate, C9 has the number of payments and C10 the regular monthly payment. The result looks kind of OK, but I'd like some confirmation.
Any assistance would be greatly appreciated.
TIA
Richard