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Mathematical Question - anyone good with maths!?


ryel01

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Howdy!

 

I'm trying to figure out how to do an equation in EXCEL - hopefully someone here is good at maths!

 

This is a financial equation, so the top number represents value and the bottom debt.

 

Required Percentage = 33%

 

Value = 100

Debt = 40

 

Doing the equation... 40/100 = 40%

 

What I want is for EXCEL to calculate the required "Input" which reduces the debt /value ratio to 33% (adjustable to whatever is required)

 

Doing it manually...

 

Input = 10

Value = 90  (100-10)

Debt = 30    (40-10)

 

30/90 = 33%

 

So it this instance, I would enter in 33% into a field, EXCEL would look at the current Value and Debt values and calculate the answer is 10.

 

Anyone?

 

Regan

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So you want to reduce both variables by the same amount, until dividing the debt by the value produces a particular percentage?

 

Well, that boils down to a fomula which you can manipulate:

 

(D-x)/(V-x) = Y    Where D is our debt, V is our value, and Y is the required fraction (e.g. for 33.3..%, Y is 0.33...)

D-x = Y(V-x)

D-x = YV-Yx

Yx-x = YV-D

x(Y-1) = YV-D

x=(YV-D)/(Y-1)

 

Plug your numbers in for Y,V and D and you'll have your x.

 

 

 

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