Santosh -- Excellent!
The key to translating these formulas is to bear a few things in mind:
1. variables next to numbers or parenthesis in ordinary math notation get
multiplied together. Same if they have a multiplication or bullet symbol (e.g.
5n, n(5), 5 ∙ n, and 5 × n are all equivalent to 5*n)
2. Exponent notation in Excel uses the caret symbol instead of superscript. (5n
is equivalent to 5^n in Excel)
3. Use parenthesis to surround parts of the calculation that should be
calculated first, unless the default order of operations is appropriate. The
default order of operations is something like functions and parenthesis, ^, *
and /, + and -, then simply left to right. In ordinary math notation, you also
have vertical alignments, as for division. In Excel, put parenthesis around
the top formula, insert the division symbol, then parenthesize the bottom
formula. if there are additional operation in the formula after that big
division, enclose all of the big division in parenthesis too.
For example, given:
5 2(b + 1)
─── + ──────────
2 c
a = ──────────────────
3
To solve for a in Excel, use:
= ((5/2)+((2*(b+1))/c))/3
4. Excel has a shortcut for the notation 123 × 10456 (where 123 is any number
and 456 is any power of 10) In Excel, you can use 123e456.
all the best :)
Asa
From: santosh subudhi [mailto:santoshkumar.subu...@gmail.com]
Sent: Wednesday, December 28, 2011 2:16 AM
To: a...@lovetour.info; excel-macros@googlegroups.com
Subject: Re: $$Excel-Macros$$ Formula correction needed for Recurring deposit
Hi Asaf,
Please find below the link I am referring to.
http://www.allbankingsolutions.com/Recurring-Deposit-Calculator-India.shtml
You are right!!!
The correct formula, however, is slightly different. The error was in the
repesentation of exponents in your graphic. This is correct:
M=(R*((1+i)^n-1))/(1-(1+i)^(-1/3))
This formula, in your worksheet, translates to:
=(I4*((1+I6/400)^I5-1))/(1-(1+I6/400)^(-1/3))
Thanks a lot the formula is working fine!!!
Will contact you soon in regards to FD calculation. ;)
Regards
Santosh Kumar Subudhi
From: a...@lovetour.info
To: excel-macros@googlegroups.com
Subject: RE: $$Excel-Macros$$ Formula correction needed for Recurring deposit
Date: Tue, 27 Dec 2011 13:03:08 -0800
Hi Santosh,
Assuming the value you have labeled ROI and I is really just ROI (remember,
your graphic indicates that i=ROI/400), you can replicate the formula in your
graphic like this:
=(I4*((1+I6/400)*I5-1))/(1-(1+I6/400)-1/3)
The result is -31751. Surely not what you hoped.
I think the problem is twofold. One: the formula in the graphic is incorrect.
Two: Your desired value of 12259 is not the solution for even the correct
formula. Possibly you chose the wrong formula altogether for replicating a
real financial value?
The formula in your graphic looks like it is intended to calculate the maturity
value for recurring deposits that are compounded quarterly with monthly
deposits.
The formula you show, reformatted a little for Excel notation, is:
M=(R*((1+i)*n-1))/(1-(1+i)-1/3)
where M= Maturity value, R=Monthly installment, n=Number of quarters, i=Rate of
interest/400.
The correct formula, however, is slightly different. The error was in the
repesentation of exponents in your graphic. This is correct:
M=(R*((1+i)^n-1))/(1-(1+i)^(-1/3))
This formula, in your worksheet, translates to:
=(I4*((1+I6/400)^I5-1))/(1-(1+I6/400)^(-1/3))
which results in 41048.
Your desired value of 12259 just doesn't make sense. Interest aside -- if you
put 1000 a month in a savings account for 12 quarters (3 years), you will have
deposited 36000. If the bank only offers you a balance of 12000+, complain!!!
Asa
From: excel-macros@googlegroups.com [mailto:excel-macros@googlegroups.com] On
Behalf Of santosh subudhi
Sent: Tuesday, December 27, 2011 2:03 AM
To: excel-macros@googlegroups.com
Subject: $$Excel-Macros$$ Formula correction needed for Recurring deposit
Hi Group,
Please look into the formula and do the necessary correction.
This is for RD calculation
--
Regards
Santosh
<mailto:santoshkumar.subu...@gmail.com> santoshkumar.subu...@gmail.com
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Regards
Santosh
santoshkumar.subu...@gmail.com
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