Home |
Search |
Today's Posts |
#1
Posted to microsoft.public.excel.misc
|
|||
|
|||
calculating a percentage
If I receive a 7% rebate on my total cost of $100,00 why do the 2 formuals
produce differnet results? =100,000*.93 = $93000 =100,000/1.07 = $93,457 Which is the correct formula to use? |
#2
Posted to microsoft.public.excel.misc
|
|||
|
|||
calculating a percentage
The difference is because (1-x) is not the same as 1/(1+x) [though they get
closer to each other as x tends towards zero] To take a more extreme example, a 100% reduction takes the value down to zero, but to divide by (1+100%) will merely halve the value. Another way of looking at it is that if you have a 50% reduction it will then need a 100% increase to get back to the original value. A 7% rebate would be the multiplication by 93%, not division by (1+7%). -- David Biddulph "Jennnifer" wrote in message ... If I receive a 7% rebate on my total cost of $100,00 why do the 2 formuals produce differnet results? =100,000*.93 = $93000 =100,000/1.07 = $93,457 Which is the correct formula to use? |
#3
Posted to microsoft.public.excel.misc
|
|||
|
|||
calculating a percentage
The first formula gives you the actual cost after the discount has be removed.
-- Gary''s Student - gsnu200765 "Jennnifer" wrote: If I receive a 7% rebate on my total cost of $100,00 why do the 2 formuals produce differnet results? =100,000*.93 = $93000 =100,000/1.07 = $93,457 Which is the correct formula to use? |
#4
Posted to microsoft.public.excel.misc
|
|||
|
|||
calculating a percentage
think of it this way mathamaticly,
100,000/1.07 = 100000 * x devide 100,000 on both sides then x = 1/1.07 = 0.934579 something. The first one is correct but the 2nd one will look like a 7% rebate but will benifit the seller more than the buyer "Jennnifer" wrote: If I receive a 7% rebate on my total cost of $100,00 why do the 2 formuals produce differnet results? =100,000*.93 = $93000 =100,000/1.07 = $93,457 Which is the correct formula to use? |
#5
Posted to microsoft.public.excel.misc
|
|||
|
|||
calculating a percentage
I assume you mean $100,000. A 7% rebate of $100,000 is $100,000 * 7% =
$7,000. So, $100,000 - $7,000 = $93,000 which is your final cost, not your rebate. Also 100,000/1.07 is the same as 100,000 * 1/1.07 = 100,000 * 0.9345794392523364485981308411215, clearly not equal to 100,000 * .93. If you receive $7,000 as a rebate at 7% you may compute the original cost by dividing the rebate, 7,000 by 7% which gives: 100,000. Tyro "Jennnifer" wrote in message ... If I receive a 7% rebate on my total cost of $100,00 why do the 2 formuals produce differnet results? =100,000*.93 = $93000 =100,000/1.07 = $93,457 Which is the correct formula to use? |
Reply |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Forum | |||
calculating percentage | Excel Discussion (Misc queries) | |||
Calculating Percentage | Excel Worksheet Functions | |||
Calculating a Percentage | Excel Worksheet Functions | |||
Calculating a percentage with the end percentage in mind | Excel Discussion (Misc queries) | |||
Calculating Percentage | Excel Worksheet Functions |