Calculation Method 2 for Years Leased (Forecasted Amount for Years 1 through 6)
The system uses this setup information for this calculation:
Retrieval Bill Codes: RRTL and RPKG.
Monthly Recurring Billing Amounts: 20,000 (RRTL) and 5,000 (RPKG).
Term of Real Estate Lease: 72 months (6 years).
New Rate (from assumption detail): 3.00.
Growth Pattern (from assumption detail): PCT01.
The system calculates the revenue amounts for the term of the real estate lease (72 months) based on the recurring billing amounts that are set up for the retrieval bill codes that you specify. Because this calculation method multiplies a compounded rate by the recurring bill code amounts, the new rate that it uses changes for each year. The system uses the new rate from the assumption detail to calculate the compounded new rate that the system uses in the subsequent year. The system continues compounding the rate for each year for which the unit is leased.
This table lists the compounding formula and the calculation formula that the system uses to derive the forecasted amount for each year:
Year |
Formula for Compounding |
Formula for Calculation |
|---|---|---|
1 |
(RTD × GPP) + (RTD) = (CR YR 1) |
(TRB) × (CR YR 1) = (FA YR 1) |
2 |
[(CR YR 1) × (GPP)] + (CR YR 1) = (CR YR 2) |
(TRB) × (CR YR 2) = (FA YR 2) |
3 |
[(CR YR 2) × (GPP)] + (CR YR 2) = (CR YR 3) |
(TRB) × (CR YR 3) = (FA YR 3) |
4 |
[(CR YR 3) × (GPP)] + (CR YR 3) = (CR YR 4) |
(TRB) × (CR YR 4) = (FA YR 4) |
5 |
[(CR YR 4) × (GPP)] + (CR YR 4) = (CR YR 5) |
(TRB) × (CR YR 5) = (FA YR 5) |
6 |
[(CR YR 5) × (GPP)] + (CR YR 5) = (CR YR 6) |
(TRB) × (CR YR 6) = (FA YR 6) |
This table shows the calculations using the setup information to forecast revenue amount for each year that the unit is leased:
Year |
Compounded Rate for Calculation |
Forecasted Amount |
|---|---|---|
1 |
(.03 × .01) + .03 = .0303 |
1,800,000 × .0303 = 54,540.00 |
2 |
(.0303 × .02) + .0303 = .030906 |
1,800,000 × .030906 = 55,630.80 |
3 |
(.030906 × .03) + .030906 = .03183318 |
1,800,000 × .03183318 = 57,299.72 |
4 |
(.03183318) × .04 + .03183318 = .03310651 |
1,800,000 × .03310651 = 59,591.72 |
5 |
(.03310651 × .05) + .03310651 = .03476184 |
1,800,000 × .03476184 = 62,571.31 |
6 |
(.03476184 × .06) + .03476184 = .03684755 |
1,800,000 × .03684755 = 66,325.59 |
Total forecasted amounts for years 1 through 6:54,540.00 + 55,630.80 + 57,299.72 + 59,591.72 + 62,571.31+ 66,325.59 = 355,959.14
The system updates the total forecasted amounts for the years that the unit is leased to the first period of the first year of the real estate lease in the F15L109 table. In this example, the system updates the total forecasted amount to period 01 of 2007.