Exponential Growth
 

Looooong ago in high-school where studying series :-)
But since i can never remember the exact formulation i do:
period 0 - start: = 10
period1: = period0 * (1+2%) = 10 * (1+2%)
period2: = period1 * (1+2%) = 10 * (1+2%) * (1+2%) = 10 * (1+2%)^2
period3: = period2 * (1+2%) = 10 * (1+2%)^2 * (1+2%) = 10 * (1+2%)^3
.... so in the end:
period n: 10 * (1+2%) ^ n

Regards,
Sebastien

"simsjr" wrote:

Brilliant! :)

Out of curiosity - how did you learn this solution?

"sebastienm" wrote:

Hi,
use the formula (replace each number by the cell address):
=10*(1+2%)^5

Regards,
Sebastien

"simsjr" wrote:

Hey,

Ok, so I have the value "10" in one cell (representing sales), and "5" in
another cell (representing number of days).

Now, I want to plug in, say, the value 2% in yet another cell and have excel
calculate the 2% as daily sales growth over the 5 days. Naturally, this means
sales will grow exponentially at a rate of 2% per day.

What I'd like to know is what function I would use to calculate this
exponential growth and return the total number of sales during the 5 days in
another cell.

Make sense?

Exponential Growth
 

So I see you have 1+2% to represent the 2% growth. What if I wanted to change
that to 5% or more? Would I swap out the 2 for the 5 (or plug in a cell
reference)?

"sebastienm" wrote:

Looooong ago in high-school where studying series :-)
But since i can never remember the exact formulation i do:
period 0 - start: = 10
period1: = period0 * (1+2%) = 10 * (1+2%)
period2: = period1 * (1+2%) = 10 * (1+2%) * (1+2%) = 10 * (1+2%)^2
period3: = period2 * (1+2%) = 10 * (1+2%)^2 * (1+2%) = 10 * (1+2%)^3
... so in the end:
period n: 10 * (1+2%) ^ n

Regards,
Sebastien

"simsjr" wrote:

Brilliant! :)

Out of curiosity - how did you learn this solution?

"sebastienm" wrote:

Hi,
use the formula (replace each number by the cell address):
=10*(1+2%)^5

Regards,
Sebastien

"simsjr" wrote:

Hey,

Ok, so I have the value "10" in one cell (representing sales), and "5" in
another cell (representing number of days).

Now, I want to plug in, say, the value 2% in yet another cell and have excel
calculate the 2% as daily sales growth over the 5 days. Naturally, this means
sales will grow exponentially at a rate of 2% per day.

What I'd like to know is what function I would use to calculate this
exponential growth and return the total number of sales during the 5 days in
another cell.

Make sense?

Exponential Growth
 

that would work perfectly.
Assuming
-10 is in A1
-5 is in A2
-2% is in A3
-in A4, enter
=A1*(1+A3)^(A2)

The
10 * (1+2%) = 10 * (1.02)
means in fact
= (10 * 1) + (10 * 0.02)
= 10 + 10*2%
= original value + the increase of 2 percent on that value
(similar base value and interest rate)

Regards,
Sebastien

"simsjr" wrote:

So I see you have 1+2% to represent the 2% growth. What if I wanted to change
that to 5% or more? Would I swap out the 2 for the 5 (or plug in a cell
reference)?

"sebastienm" wrote:

Looooong ago in high-school where studying series :-)
But since i can never remember the exact formulation i do:
period 0 - start: = 10
period1: = period0 * (1+2%) = 10 * (1+2%)
period2: = period1 * (1+2%) = 10 * (1+2%) * (1+2%) = 10 * (1+2%)^2
period3: = period2 * (1+2%) = 10 * (1+2%)^2 * (1+2%) = 10 * (1+2%)^3
... so in the end:
period n: 10 * (1+2%) ^ n

Regards,
Sebastien

"simsjr" wrote:

Brilliant! :)

Out of curiosity - how did you learn this solution?

"sebastienm" wrote:

Hi,
use the formula (replace each number by the cell address):
=10*(1+2%)^5

Regards,
Sebastien

"simsjr" wrote:

Hey,

Ok, so I have the value "10" in one cell (representing sales), and "5" in
another cell (representing number of days).

Now, I want to plug in, say, the value 2% in yet another cell and have excel
calculate the 2% as daily sales growth over the 5 days. Naturally, this means
sales will grow exponentially at a rate of 2% per day.

What I'd like to know is what function I would use to calculate this
exponential growth and return the total number of sales during the 5 days in
another cell.

Make sense?