Reversing POWER Formula
 

All,

Could someone with greater algebra skills help me with below formula?

Cell F2 contains 0.5461%
Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%

I am trying to create a formula that reverses the above calculation. I
would receive cell G2 data from a system (6.7542%)and would need to
calculate in Excel non-annualized data in cell F2 (0.5461).

I remember tackling something like this many, many years ago but can't
quite summon the required math (perhaps a logarithm)?

Thanks in advance for any ideas.

Regards,
Joel
Using Excel 2003

On 30 Jun 2005 16:03:31 -0700, wrote:

All,

Could someone with greater algebra skills help me with below formula?

Cell F2 contains 0.5461%
Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%

I am trying to create a formula that reverses the above calculation. I
would receive cell G2 data from a system (6.7542%)and would need to
calculate in Excel non-annualized data in cell F2 (0.5461).

I remember tackling something like this many, many years ago but can't
quite summon the required math (perhaps a logarithm)?

Thanks in advance for any ideas.

Regards,
Joel
Using Excel 2003


=POWER(G2+1,1/12)-1

--ron

Hi Joel,

This works for me

=(G2+1)^(1/12)-1

--

HTH

RP
(remove nothere from the email address if mailing direct)


wrote in message
ups.com...
All,

Could someone with greater algebra skills help me with below formula?

Cell F2 contains 0.5461%
Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%

I am trying to create a formula that reverses the above calculation. I
would receive cell G2 data from a system (6.7542%)and would need to
calculate in Excel non-annualized data in cell F2 (0.5461).

I remember tackling something like this many, many years ago but can't
quite summon the required math (perhaps a logarithm)?

Thanks in advance for any ideas.

Regards,
Joel
Using Excel 2003

Just to be different...

=NOMINAL(G2,12)/12

Are you trying to calculate effective rate by chance in G2?
HTH :)

--
Dana DeLouis
Win XP & Office 2003


wrote in message
ups.com...
All,

Could someone with greater algebra skills help me with below formula?

Cell F2 contains 0.5461%
Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%

I am trying to create a formula that reverses the above calculation. I
would receive cell G2 data from a system (6.7542%)and would need to
calculate in Excel non-annualized data in cell F2 (0.5461).

I remember tackling something like this many, many years ago but can't
quite summon the required math (perhaps a logarithm)?

Thanks in advance for any ideas.

Regards,
Joel
Using Excel 2003

Thanks for above responses. This is exactly what I needed!

You didn't answer Dana's question. I would be interested to know as well.

--

HTH

RP
(remove nothere from the email address if mailing direct)


wrote in message
oups.com...
Thanks for above responses. This is exactly what I needed!

Hi. What we're trying to say is that your equation may be correct. We just
want to point out that there seems to be a big difference from entering
0.5461% and returning 6.7542%. If you changed your equation slightly to
include the "/12" part...

=POWER(0.5461%+1,12)-1
to this..
=POWER(0.5461%/12+1,12)-1

You would get the same answer as
=EFFECT(0.5461%,12)

which would be 0.5475%.
Again, just thought we would mention it. :)
--
Dana DeLouis
Win XP & Office 2003


"Bob Phillips" wrote in message
...
You didn't answer Dana's question. I would be interested to know as well.

--

HTH

RP
(remove nothere from the email address if mailing direct)


wrote in message
oups.com...
Thanks for above responses. This is exactly what I needed!