# Thread: Compound Discount Calculation (Excel 97-SR2)

1. ## 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. ## Re: Compound Discount Calculation (Excel 97-SR2)

I have attached a sample file as an example solution.

zeddy

3. ## 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. ## Re: Compound Discount Calculation (Excel 97-SR2)

Steve - You're a star! Many thanks.

Regards
Peter

5. ## Re: Compound Discount Calculation (Excel 97-SR2)

Thanks Zeddy - The help is appreciated.

Regards
Peter

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