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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? |
#2
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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? |
#3
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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? |
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