Forum Discussion
How do I interpret this formula?
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 thi...
Hello Darren
My guess would be that it is a 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:
200 90%
---- = --- => X = 200 * 10% / 90% = 22,222...
X 10%