Don't understand the formula

[i82]

Hi,
I will be happy to get explain on the formula below:
=ROUND(D119*(1+H119)^5,-1)

what is the meaning of ^X? It seems that it predicts between 2026 and 2021. However, i don't understand the role of this function.
Thanks in advance for your help;

[Special-K]

^5
means to the power of 5
So 2^3 = 2 * 2 * 2 = 8.

So add 1 to H119, raise it to it's 5th power, multiply by D119 and round the result one place to the left of the decimal point - I;m not quite sure what this last part means but it's a quote from the Microsoft page, looks like it's rounding down to the nearest multiple of ten, ie 21.5 returns 20, 1.98 returns 0, 31.9 returns 30.

[i82]

Yes. This is how I understood it as well.
However, i don't understand the conection between prediction of 5 years forward from 2021 to 2026 and the Xth power. what is the logic to use this formula in order get a prediction?
Thanks again

[Special-K]

What do D119 and H119 represent?

[curiouscat408]

Re: =ROUND(D119*(1+H119)^5,-1)

My presumption is: H119 contains an average growth rate (e.g. 2% or 0.2 for gain; -2% or -0.2 for loss), and D119 contains the value in 2020 ("current value" or "present value").

Thus, D119*(1+H119)^5 is the expected value of D119 in 2026, 5 years later.

BTW, ROUND(...,-1) rounds to a multiple of 10, 1 digit position to the left.