I am no math expert, so I apprciate the insight.

In Excel, if I have a base of 100 and I gross it up by 10%, I've seen
two equations:

=100*(1+10%) and;
=100/(1-10%)

can someone explain to me which is the best one and also the
differences between the two?

Thank you.


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LatinAviation
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LatinAviation, 100 * (1 + 10%) is the correct equation. Say you make $500,
increasing it by 10% would be $500 * 1.1 = $550. The 100 * (1 - 10%) would
yield $500 * (1 - .1) = $500 * .9 = $450. HTH
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Sincerely, Michael Colvin


"LatinAviation" wrote:


I am no math expert, so I apprciate the insight.

In Excel, if I have a base of 100 and I gross it up by 10%, I've seen
two equations:

=100*(1+10%) and;
=100/(1-10%)

can someone explain to me which is the best one and also the
differences between the two?

Thank you.


--
LatinAviation
------------------------------------------------------------------------
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Thanks, Michael.

Can someone explain to me what this does?
=100/(1-10%)


I am essentially trying to understand why two different co-workers are
using different methodologies which both believe are correct.


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LatinAviation
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Essentially, the user who is multiplying is INFLATING the base by a
growth rate of 10%. The user who is dividing is DEFLATING by a growth
rate of -10%, which does the same thing as inflating by 10%.
Multiplication and Division are recipricol properties, so they should
result in the same answer.

Use whichever one is more logical for someone to understand when
looking at it.


LatinAviation wrote:
Thanks, Michael.

Can someone explain to me what this does?
=100/(1-10%)


I am essentially trying to understand why two different co-workers are
using different methodologies which both believe are correct.


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LatinAviation
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The two equations aren't exactly identical.
The first equation:
100*(1+10%)=100*11/10=100*1.1=110
The second equation:
100/(1-10%)=100*10/9=100*1.1111...=111.111...
There's about a 1% difference between the two equations. The first
equation increases 100 by exactly 10%. The second equation increases
by 11.1%


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MrShorty
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