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Calculating a percent decrease
I am working on a spreadsheet which calcualtes a decrease in base wages,
which is working fine: A1*(1-A2)= X or $15.00 *(1-8%) = $13.80. Howeever, when I work the formula in reverse, I don't get my original number: $13.80 * 8% = $14.90. Why is that? Thank you. |
#2
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Calculating a percent decrease
Because that's the way percentages work.
If you invest $100, and lose 25%, you end up with $75. But from there, you need a 33% return to get your money back. Or, if the Canadian dollar drops from par to 80 cents, it's dropped 20%. But to get from there back up to par, it has to increase 25%. When your base is $15.00, 8% is $1.20. But when your base is $13.80, 8% is only $1.10. Regards, Fred. "Karen" wrote in message ... I am working on a spreadsheet which calcualtes a decrease in base wages, which is working fine: A1*(1-A2)= X or $15.00 *(1-8%) = $13.80. Howeever, when I work the formula in reverse, I don't get my original number: $13.80 * 8% = $14.90. Why is that? Thank you. |
#3
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Calculating a percent decrease
On Feb 18, 9:01*am, Karen wrote:
I am working on a spreadsheet which calcualtes a decrease in base wages, which is working fine: A1*(1-A2)= X or $15.00 *(1-8%) = $13.80. *Howeever, when I work the formula in reverse, I don't get my original number: $13.80 * 8% = $14.90. Why is that? Your algebra is wrong. If A1*(1-A2) = X, then A1 = X / (1-A2), not A1 = X * (1+A2), which is what you really did (that is, you did 13.80* (1+8%), not 13.80*8%). For example, 13.80/(1-8%) does indeed equal 15. Note: Due to anomalies of computer binary arithmetic, it might not always be __exactly__ equal. |
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