The purpose of this workbook is to show

how Excel's PV and FV functions can be

used to find the present or future value
of a graduated annuity.

Timothy R. Mayes, Ph.D.

http://www.tvmcalcs.com/
mayest2@comcast.net
 Present Value of a Graduated Annuity Due
Initial Cash Flo 1000 Period Cash Flow
Growth Rate 3% 0 1,000.00
Discount Rate 8% 1 1,030.00
Years 5 2 1,060.90
3 1,092.73
4 1,125.51

PV ### =PV((1+B4)/(1+B3)-1,B5,-B2,0,1)
NPV Function ### =NPV(B4,E4:E8)+E3
Present Value of a Graduated Regular Annuity
Initial Cash Flo 1000 Period Cash Flow
Growth Rate 3% 0
Discount Rate 8% 1 1,000.00
Years 5 2 1,030.00
3 1,060.90
4 1,092.73
5 1,125.51

PV Function ### =PV((1+B4)/(1+B3)-1,B5,-B2,0,0)/(1+B3)

NPV Function ### =NPV(B4,E4:E8)

PV Alternative ### =PV((1+B4)/(1+B3)-1,B5,-B2,0,1)/(1+B4)

 Future Value of Graduated Annuities
Initial Cash Flow 1000 Period Due Regular
Growth Rate 3% 0 1,000.00
Discount Rate 8% 1 1,030.00 1,000.00
Years 5 2 1,060.90 1,030.00
3 1,092.73 1,060.90
4 1,125.51 1,092.73
5 1,125.51
Graduated Annuity Due
FV Function ### =FV(B4,B5,0,PV((1+B4)/(1+B3)-1,B5,B2,0,1))
FV of NPV Function ### =(NPV(B4,E4:E7)+E3)*(1+B4)^B5

Graduated Regular Annuity

FV Function ### =FV(B4,B5,0,PV((1+B4)/(1+B3)-1,B5,B2)/(1+B3))
FV of NPV Function $ 6,201.08 =NPV(B4,F4:F8)*(1+B4)^B5
This workbook is Copyright 2010 by Timothy R. Mayes, Ph.D.

Please visit: http://www.tvmcalcs.com/

You are free to use and redistribute it as long as this notice is kep intact.
However, I retain all rights to the worksheet.