Maths formula

[wb]

Im looking to work out a maths formula, and also to find out how it is written in excel......


If my goal was to double my bank in 12 months, how much should I expect to make each month?

For example:

Starting Bank: £1000
Target at end of year : £2000

Now...It is not as simple as saying divide 1000 by 12, and aim to make £83.33 per month because the bank level will be going up and down all the time. If things went to plan, In the last few months, I would be earning more than in the first few (as the bank would be bigger)

It's kind of hard to explain what I mean but I suppose it would be something to do with ratios. I'm not brilliant at maths, so I hope someone can figure out what I mean here :geek

[vegyjones]

A simple wqay would be to have a space that said like
Target - Current Balance / Number of months remaining!

The target would be a fixed figure
The current balance would be a changing figure
but you'd have to change the figure of the number of months remaining at the beginning of each new month!

Like you say, there's probably a better way of doing it, but I'll leave that for the excel experts! :D

[presto]

theres probably an 'propper' formula for it but.

in excel if you make a table (365 days) and:
day 0 (start) - set 0% (£0) as a marker
day 182 (1/2 year) - set 25% (£250) as a marker
day 270 (3/4 year) - set 50% (£500) as a marker
day 365 (1 year) - set 100% (£2000) as a marker
or whatever guidlines you want

then plot a graph using adverage curve (not straight line) you should get a smooth curve from £0 to £1k profit - getting steeper as the year progresses.

................................................

a more complicated way would be to plot each day, increasing the percentage rise each day - though to be honnest i am not sure how to calculate the % rise.

[wb]

Thanks presto, thats the type of thing I mean.

I'll TRY to do a graph, and hopefully one of the lads can post the formula later if there is one.

Thanks

[presto]

if yo use something like this - http://www.win2win.co.uk/forum/showthread.php?t=29610&highlight=power+compound
set cell 'H33' to =H32*1.0019 (and drag down)
that will give a straight line from 1000 to 2000 - but you could fiddle with the 'aim' figures so that the first half are '=h32*1.001' then the next quarter to a different sum bigger than the 1.0019 then again for the 3rd quarter of the year. though that wouldn't give a nice curve.

it's bugging me now as i am sure i once did a similar thing. ;fire

[wb]

Hmm. I'm not great with these bloody graphs, and Im getting a bit tired. I'll have another look tomorrow. Thanks presto.

[MattR]

Wayne

Attached a sheet. Don't know if it'll help but you can amend the figure in the % column each month to set yourself your new target building up to the 100% total increase target for the year.

[wb]

Thats fantastic Mat.

Very good of you to do that. Good rep on the way.

Regards,

Wayne.

[MattR]

No problem Wayne, hope it's of some help.

[wb]

Just playing around with it matt. A quick question though....

lets say I get to June for example, and my bank is only £1200, and not the £1420 projected figure, but I am still aiming for £2000 by the end of the year...

Where do I fill in the £1200 so the remaining months will adjust accordingly?

Hope you know what I mean :geek I'm not very good at explaining maths :splapme

[mathare]

It sounds to me like you want to earn 1xBank in 12 months aiming for the same percentage increase of your bank each month - that right?

In which case you need to solve (1+n)^12 = 2.00 for n which means n = 5.94% interest every month.

Month 0: £1000
Month 1: £1059
Month 2: £1121
Month 3: £1187
Month 4: £1257
Month 5: £1331
Month 6: £1410
Month 7: £1493
Month 8: £1581
Month 9: £1675
Month 10: £1774
Month 11: £1878
Month 12: £1989

That's using 1.059 as the multiplying factor each month and rounding down to the nearest £ but you can see it's basically right. The exact factor is 2.00^(1/12)

[MattR]

Just playing around with it matt. A quick question though....

lets say I get to June for example, and my bank is only £1200, and not the £1420 projected figure, but I am still aiming for £2000 by the end of the year...

Where do I fill in the £1200 so the remaining months will adjust accordingly?

Hope you know what I mean :geek I'm not very good at explaining maths :splapme


The % figure in that sheet only works by manually adjusting it. So you could delete the ones after the month you are up to. The top figure would then tell you what % you have left to make of your 100% target, then you could perhaps divide that by the months you have left and put those new %'s in the cells that were deleted. Attached another sheet to show what I mean cos that sounds confusing reading it back and I wrote it :spinning

Mat could probably guide you with something automated as he is the guy for this. My excel knowledge is fairly basic really. Atttached below anyway in case it' of use.

As I say it's fairly basic and manual but see if it helps.