|  | Solving an equation | | |
| | | dividby0 |  |
|  Posted: Tue Sep 02, 2008 4:29 am Post subject: Solving an equation |  |
Hi,
I'm working on a project in Financial Management.
I need to solve the following equation for the value of 'X' in MS
Excel
2X/(1+r1)^4 + 20/(1+r1)^6 + 30/(1+r1)^7 + 30/(1+r1)^8 + 10/(1+r1)^4 =
2X/(1+r2)^4 + 2X/(1+r2)^4
Where r1 = 21% and r2 = 17%
Help needed!
Regards
--
dividby0 |
| |
| | | Shane Devenshire | |
| | Posted: Tue Sep 02, 2008 5:04 am Post subject: Re: Solving an equation | |
Hi,
Enter the following formula in cell B1
=2*A1/(1+A)^4+20/(1+A)^6+30/(1+A)^7+30/(1+A)^8+10/(1+A)^4-2*A1/(1+B)^4-2*A1/(1+B)^4
Then choose Tools, Add-in and put a check beside Solver and click OK.
Then choose Tools, Solver and set the target cell as B1 and the changing
cell as A1 and with a Value of 0.
Cheers,
Shane Devenshire
Microsoft Excel MVP
"dividby0" <mithhilarora@gmail.com> wrote in message
news:83969245-d671-48d6-a6a7-19064b3af444@t54g2000hsg.googlegroups.com...
| Quote: | Hi,
I'm working on a project in Financial Management.
I need to solve the following equation for the value of 'X' in MS
Excel
2X/(1+r1)^4 + 20/(1+r1)^6 + 30/(1+r1)^7 + 30/(1+r1)^8 + 10/(1+r1)^4 =
2X/(1+r2)^4 + 2X/(1+r2)^4
Where r1 = 21% and r2 = 17%
Help needed!
Regards
--
dividby0 |
|
| |
| | | Dana DeLouis | |
| | Posted: Tue Sep 02, 2008 1:06 pm Post subject: Re: Solving an equation | |
dividby0 wrote:
| Quote: | Hi,
I'm working on a project in Financial Management.
I need to solve the following equation for the value of 'X' in MS
Excel
2X/(1+r1)^4 + 20/(1+r1)^6 + 30/(1+r1)^7 + 30/(1+r1)^8 + 10/(1+r1)^4 =
2X/(1+r2)^4 + 2X/(1+r2)^4
Where r1 = 21% and r2 = 17%
Help needed!
Regards
--
dividby0
|
One could use either Solver or Goal Seek.
For Goal Seek, enter your two equations. (I've used Range names)
=2*x/(1+_R1)^4+20/(1+_R1)^6+30/(1+_R1)^7+30/(1+_R1)^8+10/(1+_R1)^4
=2*x/(1+_R2)^4+2*x/(1+_R2)^4
In another cell, subtract these two values.
Use Goal Seek to set this new function to zero by adjusting your x value.
Another option would be to solve the equation directly...
r1=.21
r2=.17
?(10*(r1*(r1*(r1*(r1+4)+ +11)+9))/((r1+1)^8*(4/((r2+1)^4)-(2/(r1+1)^4)))
21.1940833919125
--
HTH :>)
Dana DeLouis |
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