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Calculating Compound Interest/Escalation

P: n/a
I am setting up a database to keep track of network leases.
I have a field for "original rent" and then fields to capture how it
escalates (what % how often).
I want to set up fields that give 1) the current rent and 2) what the
rent will be at next escalation.
Is there a way to make Access calculate compounded interest?

For example:

Original rent is $100
Escalation is 4% annually

I want it to show:
Year one: $100
Year two: year1+4%
year three: year2+4%

I got it to do 4% every year but it's not compounding, it's simply 4%
of the original rent (not the new rent) each time, which over time
makes the amount way off.

If anyone can help, please let me know! I am (somewhat) new to Access
so keep that in mind. :)

THANK YOU!

Dec 4 '06 #1
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3 Replies


P: n/a
What you need to use is the formula:-

Rent * (1.04)^N

Where N is the number of years

so year one would give you Rent X 1.04

year two would give you Rent X 1.04 X 1.04

year three would give you Rent X 1.04 X 1.04 X 1.04

Have you though about what happens if the interest rate changes? That
would make life interesting!

Geoff

Dec 4 '06 #2

P: n/a

de**********@gmail.com wrote:
I am setting up a database to keep track of network leases.
I have a field for "original rent" and then fields to capture how it
escalates (what % how often).
I want to set up fields that give 1) the current rent and 2) what the
rent will be at next escalation.
Is there a way to make Access calculate compounded interest?
VBA has built in financial functions: see VB help for the 'FV' future
value function (I think) and the 'See Also' for the other available
Financial functions. One of them should give you your answer.

Ron, King of Chi

Dec 4 '06 #3

P: n/a
Thank you so much!
I will look at it more this evening. I appreciate both of your help. :)

King Ron wrote:
de**********@gmail.com wrote:
I am setting up a database to keep track of network leases.
I have a field for "original rent" and then fields to capture how it
escalates (what % how often).
I want to set up fields that give 1) the current rent and 2) what the
rent will be at next escalation.
Is there a way to make Access calculate compounded interest?

VBA has built in financial functions: see VB help for the 'FV' future
value function (I think) and the 'See Also' for the other available
Financial functions. One of them should give you your answer.

Ron, King of Chi
Dec 4 '06 #4

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