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Calculate compounding "interest"

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  1. #1
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    Calculate compounding "interest"

    Not really compounding interest, but sort of. Here's what I need in layman's terms. Hopefully someone will understand this logic.

    In the attachment, I need to calculate "Est. Purchase" for the number of "value in B1" purchases of each item in Column A for Rows 4 through 30 where "Value in A" <> "". Each time a purchase of Row A (let's stick with A4) is made, the value of the item increases ~15%, so the second item of A4 will be ("value of B4" * 1.15), the third will be (("value of B4" * 1.15) * 1.15), and so on. I need to calculate the total purchase price of "value in B1" items of A4.

    So if B1=3, I need C4 to be ("value of B4" + ("value of B4" * 1.15) + (("value of B4" * 1.15) * 1.15)), and then I need that repeated for all rows where "Value in A" <> "". The value in B1 will be changed by the user in order to determine which item in Column A has the highest return value of other calculations that I left out of the attachment (they are irrelevant to this problem), so it will be anywhere from 2 to 20 (or even greater).
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    Last edited by DrStrangepork; 10-11-2012 at 01:38 PM. Reason: second calculation explanation was incorrect

  2. #2
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    Re: Calculate compounding "interest"

    I wouldn't write a code for this. Just realize that (((B8*1.15)*1.15)*1.15) is the same as( B8*(1.15^3)). I would just have your formula in column C reference $B$1. so your formula in C would look like =IF(A10<>"",B10*(1.15^($B$1),"") and just autopopulate it on down. A10 and B10 should change to A11 and B11, respectively with your "compounding" remaining the same. Hope this helps
    Piggy

  3. #3
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    Re: Calculate compounding "interest"

    That's not exactly right. The end result is B4*(1.15^($B$1)), or where B1=5, that calculation would be B4+(B4*1.15^5), or just two numbers being added. What I need is B4+(B4*1.15)+((B4*1.15)*1.15)+(((B4*1.15)*1.15)*1.15)+((((B4*1.15)*1.15)*1.15)*1.15)+(((((B4*1.15)*1.15)*1.15)*1.15)*1.15), or a total of 5 numbers being added together. It is all the subsequent additions that I can't seem to calculate properly.
    Last edited by DrStrangepork; 10-11-2012 at 02:17 PM. Reason: Changed from Solved to Unsolved

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