How do I interpret this formula?

Question

I received a spreadsheet with the following formula: =c6/(1-10%)*10%.

In cell c6, is $200 so the result is $22.22 with a then total sum of $222.22.

I cannot wrap my head around how to interpret this formula so any assistance in explaining is appreciated. Thanks

detlef_lewin · Answer

Hello Darren&nbsp;My guess would be that it is a&nbsp;reverse calculation where 200 is the net value and 10% is the discount rate. 1-10% = 90% which represents the net value.Doing a cross-multiplication/rule of three gets you to:&nbsp;200&nbsp; &nbsp; 90%---- = ---&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;=&gt;&nbsp; &nbsp; X = 200 * 10% / 90% = 22,222...&nbsp;X&nbsp; &nbsp; &nbsp; &nbsp;10%&nbsp;

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How do I interpret this formula?

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