Results 1 to 5 of 5
  1. #1
    3 Star Lounger
    Join Date
    Oct 2002
    Location
    Ross-on-Wye, Herefordshire, United Kingdom
    Posts
    212
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Compound Discount Calculation (Excel 97-SR2)

    Ok.. Can someone help my tired brain!

    I know the total price I want to charge for a service over 'n' years, however, I want present it to a client as a decreasing discount over the term 'n' years. i.e. The answer is 20, the term might be 5 years, and i want to show a decreas in costs of 10% year on year, but still end up with 20 as the total. Make sense? What I need to calcule is the cost per annum for 1 to n, and for the sum of those to add up to 20, in this case.

    Regards
    Peter

  2. #2
    WS Lounge VIP
    Join Date
    Mar 2002
    Location
    Newcazzle, UK
    Posts
    2,815
    Thanks
    132
    Thanked 480 Times in 457 Posts

    Re: Compound Discount Calculation (Excel 97-SR2)

    I have attached a sample file as an example solution.
    Have a look and perhaps adapt it for your needs

    zeddy

  3. #3
    WS Lounge VIP sdckapr's Avatar
    Join Date
    Jul 2002
    Location
    Pittsburgh, Pennsylvania, USA
    Posts
    11,225
    Thanks
    14
    Thanked 342 Times in 335 Posts

    Re: Compound Discount Calculation (Excel 97-SR2)

    Is this what you are after. This is the amount for any year, x.

    =Total*Percent/(1-(1-Percent)^Years)*(1-Percent)^(x-1)
    Total = 20
    Percent = 10%
    Years = 5
    x = "year of interest" (1, 2, 3,4,5)

    Steve

  4. #4
    3 Star Lounger
    Join Date
    Oct 2002
    Location
    Ross-on-Wye, Herefordshire, United Kingdom
    Posts
    212
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Compound Discount Calculation (Excel 97-SR2)

    Steve - You're a star! Many thanks.

    Regards
    Peter

  5. #5
    3 Star Lounger
    Join Date
    Oct 2002
    Location
    Ross-on-Wye, Herefordshire, United Kingdom
    Posts
    212
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Compound Discount Calculation (Excel 97-SR2)

    Thanks Zeddy - The help is appreciated.

    Regards
    Peter

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •