October 15th, 2017, 11:59 AM  #1 
Newbie Joined: Oct 2017 From: Rhode Island Posts: 1 Thanks: 0  Equation Help
Hello trying to do a calculation to anualaize growth for an incentive plan i have a fixed value (meaning the relationship was owned for 12 months by one person) and a variable for the fixed value for example i used this an illustration i took ownership for a portfolio that was worth 65,000 on Jan 1 at the end of the year it was worth 71,000 i used this calculation 71,000*(12/12)65,000*(12/12)/(65,000*(12/12))= 9.23% growth i inherited some new clients mid year worth 25,000 and at the end of the 6 months they were worth 21,000. so i tried this calculation 21,000*(6/12)25,000*(6/12)/(25,000*(6/12)) which for this i got (16%) which i am not sure is right also if it is how would i then blend the scores to get their true growth ty 
October 15th, 2017, 01:11 PM  #2  
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 13,597 Thanks: 954  Quote:
b = beginning (65000) e = ending (71000) g = % growth (?) g = e/b  1 = 71000/65000  1 = 1.0923  1 = .0923 or 9.23%  
October 15th, 2017, 01:12 PM  #3  
Math Team Joined: Jan 2015 From: Alabama Posts: 3,261 Thanks: 894  Quote:
Cleary 21000 24000 is negative 3000. Divided by 25000, 3000/65000 is 12%, not 16%. Since that is for half a year, the "annualized" loss is 24%, 2 times 12%. To combine the two, "weight" each by the time interval. The first was for one year, the second for 1/2 year. ((9.23)(1)+ (24)(1/2))/(3/2)= (9.23 12)/(3/2)= (2.77)(2/3)= 5.54/3= 1.85... This is a 1.85% loss.  

Tags 
equation 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Cartesian equation of loci from given complex equation  max233  Algebra  2  March 31st, 2017 10:40 PM 
Quadratic equation / Cubic equation  shaharhada  Algebra  2  August 30th, 2016 12:09 PM 
finding equation tangent to an equation  DarkLink94  Algebra  5  July 4th, 2015 03:32 PM 
Equation jump in graphical algebra equation  DarkX132  Algebra  3  September 26th, 2014 11:15 PM 
Show that an equation satisfies a differential equation  PhizKid  Differential Equations  0  February 24th, 2013 11:30 AM 