Forum Discussion
sum quotient
I was invited by Mr Kim for help. However, I am not so familiar with Financial Mathematics.
I created a column to create the quotients (C/(1+r)^t), where r is indicated in L1. Changing the value in L1 will give a different sum in L4. So, the user can guess the value of r.
There is a function called "XIRR" which seems to do this type of problem. But, I do not understand the setting.
Mr. Behler
please see attached file if this is what you need.
do not test this directly on your file.. try it first in the test sample.
Hope this helps.
thanks
i want to do the following with my numbers:
7.776/(1+r)^1+7.898/(1+r)^2+8.054/(1+r)^3+…+3.248/(1+r)^28 - 100
set equal to 0 and solve for r
for example i could imagine putting this:
=(E2/(1+I2)^B2+E3/(1+I2)^B3+E4/(1+I2)^B4 and so on subtract by 100 and then using the solver chaning the 0.2 (which are a random number now)
but im not sure..
what i want to do is:
(E2/(1+I2)^B2+E3/(1+I2)^B3+E4/(1+I2)^B4+E5/(1+I2)^B5+E6/(1+I2)^B6+E7/(1+I2)^B7+E8/(1+I2)^B8+E9/(1+I2)^B9+E10/(1+I2)^B10+E11/(1+I2)^B11+E12/(1+I2)^B12+E13/(1+I2)^B13+E14/(1+I2)^B14+E15/(1+I2)^B15+E16/(1+I2)^B16+E17/(1+I2)^B17+E18/(1+I2)^B18+E19/(1+I2)^B19+E20/(1+I2)^B20+E21/(1+I2)^B21+E22/(1+I2)^B22+E23/(1+I2)^B23+E24/(1+I2)^B24+E25/(1+I2)^B25+E26/(1+I2)^B26+E27/(1+I2)^B27+E28/(1+I2)^B28+E29/(1+I2)^B29)-100
set this equal to 0 and replace I2 by the value which gives me 0 for the equation. (whats an easy way to write it?)
- my apologies - this turns out to be very complex for me.....
solving for I2 is - there could be a circular reference in this..
maybe other people can solve this..
good luckI was invited by Mr Kim for help. However, I am not so familiar with Financial Mathematics.
I created a column to create the quotients (C/(1+r)^t), where r is indicated in L1. Changing the value in L1 will give a different sum in L4. So, the user can guess the value of r.
There is a function called "XIRR" which seems to do this type of problem. But, I do not understand the setting.