Years to Get from One Rate to Next Rate

[CaressaMarquez]

Good Afternoon:

Can you help me with a formula to find the years it would take to get from one rate to the next rate using a standard compounding percent increase each year. For example:

Minimum Salary: $10.20
Next Rate: $11.23
Percent Increase Each Year: 3%

Answer should be approximately 3 to 4 years (which I get by hand-calculating $10.20 x 3% = .306 + $10.20 = 10.506 x 3% = .31518 + 10.506 = 10.82118 x 3% = .324654 + 10.82118 = 11.145815). I have a lot of numbers and I would rather not hand calculate them all.

Any help would be appreciated.

- Caressa :banghead:

 

[Galaxiom]

You need the Log to base 1.03 of NextRate/MinimumSalary.

A nominated base is supported in the Excel LOG() function but AFAIK not in Access.

This page shows how to use an Excel function in Access.
http://support.microsoft.com/kb/198571

Alternatively use this in Access:

LOG(NextRate/MinimumSalary)/LOG(1.03)

BTW Access Log function uses the Natural Number as its base.

 

[CaressaMarquez]

Thanks Galaxiom...the formula worked.

I need to further expand this since employees only get reviews once a year and fractions for number of years to the new rate will not work. Also, based on where the employee's pay is in a pay range, the percent merit increase changes. As you can see below, employee's pay which is from minimum ($10.20) to OneThird ($11.23) is eligible for 3% increase for strong performance. From OneThird ($11.23) to Midpoint ($11.75) or to TwoThird ($12.27), the employee is eligible for 2% for strong performance.Greater than TwoThird ($12.28) to Maximum ($13.30), the employee is eligible for 1% for strong performance.

Would you also know the formula to find the compounded rate between $10.20 and $11.23?

10.20 x 3% = .306 + $10.20 = 10.506 x 3% = .31518 + 10.506 = 10.82118 x 3% = .324654 + 10.82118 = 11.145815 should be the answer

Hope you can help.

Thanks,
Caressa