In some financial arrangements, payments rise or fall each year. These periodic increases are often due to a Cost of Living Adjustment (COLA). The Percent Step series accommodates these payments by generating a series of amounts that increase or decrease by a given percentage each year or after a specified number of payments or withdrawals.
To enter payments that increase or decrease by a set percentage
- Click the Home ribbon's Special Series menu button in the Detail group.
Tip: You could also press [F2] from the Amount field of a cash flow line.
- Select Percent Step from the drop-down menu. The cash flow line will expand to include the Special Series detail.
- Enter the first payment amount in the Starting amount field. If the first payment amount is unknown, type [U].
- Enter the Percent change for each level. For example, if you want the payment amount to increase by 2 percent after a specified number of payments, enter 2 here. For a decrease, precede the percent with a minus (-) sign.
- Enter the number of payments that occur before each change in the Number made before change field. For example, if you want 12 payments and then an increase, enter 12.
After editing the series detail, you can continue on to the Number field by pressing [Tab]. TValue will automatically calculate the payment amounts when the amortization schedule is prepared.
Example screenshots
Cash Flow Matrix
Amortization Schedule Report
