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HvgoCA's avatar
HvgoCA
Copper Contributor
Oct 08, 2020
Solved

Series on excel

I have a value, 100 for example and a rate (5%) with a period on 3 years and use 90% of the result. I need to recreate this formula (100/3*((1+5%)³-1)+100/3*((1+5%)²-1)+100/3*((1+5%)-1)*90% So if i ...
excel
  • Riny_van_Eekelen's avatar
    Riny_van_Eekelen
    Oct 09, 2020

    HvgoCA As a variant, and if you are on a recent version of Excel, please find a formula in the attached workbook, using the SEQUENCE function. No VBA required.

     

    Edit: updated file!

Rajesh_Sinha's avatar
Rajesh_Sinha
Iron Contributor
Oct 09, 2020
It's very simple put the value of n in any cell and use the cell address/references in the formula for example,,,

Suppose in cell A1 you kept value of n,, then this would be the formula.

=100/$A$1*((1+5%)²-1)+100/$A$1*((1+5%)-1)*90%
HvgoCA's avatar
HvgoCA
Copper Contributor
Oct 09, 2020
Rajesh_Sinha its not that simple, the idea is that when you change the value of "n" on a cel it changes the lengh of the entire ecuation: for example:
r = 100
n = 4
i = 3%
then you get:
x = ((100/4(((1+0.03)^4)-1)+(100/4(((1+0.03)^3)-1)+(100/4(((1+0.03)^2)-1)+(100/4(((1+0.03)^1)-1))*0.90
and goes on larger or smaller while changing n.
  • Rajesh_Sinha's avatar
    Rajesh_Sinha
    Iron Contributor
    Oct 10, 2020

    HvgoCA 

     

    Check this, I've put value of n, r & i in cells F15, F17 & in F18.

     

    • Your formula in in cell I15:

     

     

    =((100/4*(((1+0.03)^4)-1)+(100/4*(((1+0.03)^3)-1)+(100/4*(((1+0.03)^2)-1)+(100/4*(((1+0.03)^1)-1))*0.9))))

     

     

    • My formula is in cell I18:

     

     

    =(($F$17/$F$15*(((1+$F$18)^4)-1)+($F$17/$F$15*(((1+$F$18)^3)-1)+($F$17/$F$15*(((1+$F$18)^2)-1)+($F$17/$F$15*(((1+$F$18)^1)-1))*0.9))))

     

     

     

    And both produces same results.

     

    Remember whenever you are using cell references in the formula, Excel makes the formula  dynamic, and change value in cell depends on situation, if and when required or not.

     

    • Riny_van_Eekelen's avatar
      Riny_van_Eekelen
      Platinum Contributor
      Oct 10, 2020

      Rajesh_Sinha Allow me to comment: The point is that the number of times the part "(1+%)^n" needs to be included, varies with the number of periods. Therefore you cannot build a static formula that includes a fixed number of these calculations. If there are only two periods, it would be "(1+%)^2 + (1+%)^1". Six periods would be "(1+%)^6 + (1+%)^5 ........ + (1+%)^1".

      You'll need a UDF or DA formula as demonstrated above. Try this: change the number of periods to 6 but DO NOT edit your formula! You'll see it won't work.

      • Rajesh_Sinha's avatar
        Rajesh_Sinha
        Iron Contributor
        Oct 10, 2020

        Riny_van_Eekelen 

         

        Check my formula I've never suggested to use Cell references for PERIODs,,, are sitll ^4, ^3, ^2 & ^1,,, I have shown that how the value of r , n & i can be used through Cell references.

         

        Since the OP (original post owner) has raised the issue,,, "change the period, it automatically return the value, like this if, n = 2", and I responded that value of n can be stored in cell even,, no where the OP said the period.

         

        In example above OP has used

        r = 100
        n = 4
        i = 3%

        No description of PERIOD !!

         

        • And if the PERIODs are few, then we may also put then in cells,, like ^$A$1 for ^4 and others.

        I'm agree on using UDF, since is better and faster. 

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