let us consider following example
Example: Invest $2,000 now, receive 3 yearly payments of $100 each, plus $2,500 in the 3rd year. Use 10% Interest Rate.
Let us work year by year (remembering to subtract what you pay out):
Now: PV = -$2,000
Year 1: PV = $100 / 1.10 = $90.91
Year 2: PV = $100 / 1.102 = $82.64
Year 3: PV = $100 / 1.103 = $75.13
Year 3 (final payment): PV = $2,500 / 1.103 = $1,878.29
Adding those up gets: NPV = -$2,000 + $90.91 + $82.64 + $75.13 + $1,878.29 = $126.97
Looks like a good investment.
i have tried to calculate same in excel
10%
100
100
100
2500
-2000
=NPV(A1,A2,A3,A4,A5)+A6
and got (43.78),why?please help me
You need to net your final year - 100 + 2500
The NPV function assumes each cell value is the money recieved at the end of its own year.
It is assuming that you are getting the 2500 a year after the last 100 dollar payment.
try this instead:
100
100
2600
NPV(.10,100,100,2600)-2000 = ~126.97
Related
Let's say the yearly simple interest is 10% on a principal of $100. At the end of one year, the new principal is $110. I'm trying to calculate the compound interest equivalent so by the end of the 4th quarter, the new principal should still be $110. In the example below, I'm compounding quarterly (which is incorrect) and I'm ending up with $110.38. How do I modify the formula so I end up at $110?
With your current setup:
In B5: =B2*(1+B1)^(1/4)
In B6 and drag down: =B5*(1+B$1)^(1/4).
This is technically maths rather than programming but, since Excel is a crossover, we can possibly let it through :-)
The formula for calculating initial capital plus cumulative interest on an amount of b at r% per period over n periods is:
newb = b * (1 + r/100)n
Hence, the formula for getting 10% per year with quarterly interest over that year is (using 1.1, since newb must be 10% higher than b):
1.1 = (1 + r/100)4
So, let's just give the expression 1 + r/100 the term mult for now, and we can work out the rate from that later:
mult^4 = 1.1
=> mult = ∜(1.1)
=> mult = 1.024113 (roughly)
We can then calculate that the desired interest rate is 2.4113% (by starting with mult, subtracting one, then multiplying by a hundred).
And here's the table to prove it (interest values are rouned):
Current New
Balance Interest Balance
------- -------- -------
100.00 2.41 102.41
102.41 2.47 104.88
104.88 2.53 107.41
107.41 2.59 110.00
-----
10.00
You can see that you reach the 10% increase at the end of the fourth quarter.
In Excel, assuming A1 holds the desired annual interest rate (like 10) and B1 holds the number of periods in a year (like 4), you can calculate the periodic interest rate with:
= 100 * (power (1 + a1 / 100, 1 / b1) - 1)
as per the following screenshot (which also has the four quarterly calculations):
The formulae for the tabular cells are, if you're interested:
+ A + B + C
3 | 100 | =ROUND(a3*$c$1/100,2) | =a3+b3
4 | =c3 | =ROUND(a3*$c$1/100,2) | =a4+b4
5 | =c4 | =ROUND(a3*$c$1/100,2) | =a5+b5
6 | =c5 | =ROUND(a3*$c$1/100,2) | =a6+b6
Feel free to use them as you see fit.
I have been given a table with retention rates starting from day 1 to day 364. I have been given a current DAU count of 600k with a degradation rate of 2% per week(I am assuming current DAU means DAU on Day 1. The other information includes a count of daily acquired new users which is 10k.
The problem is to forecast/predict users on day 365.
What would be the best way to approach this problem?
I don't know whether my approach is correct but below is what I am thinking.
Step 1: Starting from a count of 600k on day one add 10 k users each day. On day 8 deduct 2% from day 7 count and perform the same operation till day 364.
Step 2: For the retention rates. Say day 1 - 100%, 2-60%, 3-40%, 4-30%...day 364-1%. Calculate DAU using values in Step 1 and run a cumlative sum using the retention rates.
Example:
Day 1 - 600,000 * 100 %
Day 2 - 600,000 * 60% + 610,000 * 100%
Day 3 - 600,000 * 40% + 610,000 * 60% + 620,000 * 100%
and so on
Once I have the DAU from Day 1 to Day 364 use Time series forecasting and predict the DAU for Day 365.
Thank you!
Adheip
Let :
A1 = day
B1 = RR
C1 = no of users
A2 = 0
B2 = 100%
C2 = 600000
E1 = 0
F1 = 1
G1 = 2
H1 = 3
I1 = 4
J1 = 5
K1 = 6
L1 = 7
M1 = 8
N1 = 9
O1 = 10
P1 = 11
Q1 = 12
R1 = 13
with
D2 =SUM(E2:R2)
drag until D16,
C3 =C2+10000
drag until C16, and
E2 =IF(E$1>$A2,0,INDEX($C:$C,MATCH(E$1,$A:$A,0)))*INDEX($B:$B,MATCH(E$1,$A:$A,0))
drag until R16.
Hope that helps. (:
I have a calculation which I am unable to crack.
Lets say my Cost Price is 300. I want to sell the item at No Profit or No Loss. My total commission/expenses will be 30%. So it means i need to sell the item at 390.
But if I do 390 - 30% = 273.
How can I see the item, so that if I minus 30% to it. My Revenue will still be 300.
the formula you want is
=300/0.7
or
=300/(1-30%)
basically it is 300= x*(1-.30) where the (1-.30) is the amount that wants to be kept after the commision of 30%. Solving for x we get the above formula.
You want Sell Price - 30% Sell Price = Cost Price.
Combining the left two, you have 70% Sell Price = Cost Price.
Divide both sides by 70% and you get Sell Price = (1/0.7) Cost Price.
The fraction 1/0.7 is approximately 1.42857.
I was looking for a similar equation/formula, but then I built it in Excel.
So if you have, say, an item with
CostPrice = 200
Then you add a ProfitMargin = 20% so the
SellPrice = 200 + 20% = 240
Then the reverse equation for this will be
CostPrice = ( SellingPrice * 100 ) / ( ProfitMargin + 100 )
// In your case it should be
CostPrice = ( 240 * 100 ) / ( 20 + 100 )
= 200
Or Simply do the following:
CostPrice = SellingPrice / 1.2 = 240 / 1.2 = 200 <-- This will reduce the added 20%
I was looking for the same thing. None of the people here seemed to understand exactly what you were going for.
Here is the formula I used to get 300 as the answer.
=390/(1+30%)
I have an accounts excel sheet where you input all your expenses, all your incomes (gst inclusive), and it calculates how you are placed (E.G. -$717.75 for the month).
I It also gives you the gst content to pay $taxableIncome*3)/23 and a rough guide as to how much income tax you should put away $taxableIncome*0.17.
You also tell the program what your hourly rate is.
I am wanting to add to the program to allow it to tell you that you need to work X more hours this month to balance.
This wouldn't be soo hard,
$deficit/$hourlyRate = hours needed to work except for each additional hour worked we need to add ($hourlyRate*3)/23 to the gst expense, and add $hourlyRate*0.17 to the income tax expense.
This is the part I don't quite get how to work out.
So given an hourly rate of $21.00+gst = $24.15/h and a deficit of $717.75 how can I work out how many more hours I would need to work?
basically I am wondering how I can do a formula of
0 <= [(x1+x2+x3...)-(y1+y2+y3...)] / z1
Where x1 must increase until the entire formula equals 0, but as x1 increases, so must y1 and y2
x. = Income Source
y. = Expense
z. = Hourly Rate (gst inclusive)
Note that while the excel formula would be useful I am not expecting people to do the work for me, just a generic overview in pseudocode will work.
So, set:
gross new wage incl. gst - new gst - new income tax) =
-(current income - current expense) or -(Y-E)
where -(Y-E) >= 0
gross new wage - (gross new wage * 3/23) - (gross new wage * 0.17) = -(Y-E)
gross new wage * (1 - 3/23 - 0.17) = -(Y-E)
gross new wage = -(Y-E) / (1 - 3/23 - 0.17)
new hours * gross wage rate (incl. gst) = -(Y-E) / (1 - 3/23 - 0.17)
new hours = (-(Y-E) / (1 - 3/23 - 0.17)) / gross wage rate
That works, doesn't it?
Knowing that i am getting paid $10 000 a year, and that each year my salary increase by 5%.
What is the formula for Excel to know how much i will get in 5 year?
Thank you for any advise
The formula in Excel is:
=VF(5%;5;0;-10000)
Which results in: $12,762.82
If your Office is english version you can use:
=FV(5%;5;0;-10000)
=(10000*((1 + 0.05)^5))
The Compound Interest Equation
P = C (1 + r/n)^nt
Where...
P = Future Value
C = Initial Deposit/Salary
r = Interest Rate/Pay Increase (Expressed as a Fraction: EX = 0.05)
n = Number of Times per Year the Interest/Pay Raise Is Compounded (0 in Your Example)
t = Number of Years to Calculate
The Formula is POWER(B1,C1)*10000, and the cell B1 is (1+5% ), the cell C1 is the number of years
current = 10 000
for each year -1
current = current * 1.05
end for
current now has current salary for the given number of years