How to create exponential growth in excel over a year

Question

o I'm attempting to construct an excel model in which the numbers will rise exponentially each month to a certain value at the end of the year that is determined by annual expectations. I currently have it divided by 12, and because of the enormous leaps from one year to the next, the growth chart is highly erratic. Let's assume for the sake of illustration that the required number for the year is 12 for 2020. Currently, I would receive one (12/12) per month. However, I would want for it to increase gradually or exponentially, so for instance, 0.2, 0.5, 0.9, etc., with December being the highest, and have a total of 12 for the full year. Then, starting in January of the following year (2021), it would start with the December 2020 number and increase from there to the desired number (let's say total 24 for 2021), and so on. I'd rather it to expand more rapidly and exponentially, like a hockey stick.

What approach would be the best for this?

Answer 1

To find an interest rate that will provide you a specific target value, utilise the RRI function. Using this, one can locate terms in a geometric series that have a specific sum (which is what you seem to be asking for).

Consider wanting 12 exponentially growing numbers, which, when multiplied by 100, give you the number 2000. Repeatedly multiply from 100 by (1 + RRI(12,100,2000)). Simply compute the difference each month to acquire the desired numbers, which will be 12 figures that add up to 1900: