Maths question...

[London Geezer]

Hello guys,

this time it's a question from me, not KILER...

Basically i want to know the difference between these two:

x*1.053

and

x/(1-0.053)


I've always used the first one to gross up a number to a percetage of it (for example 100*1.05=105), but now some guy here is using the second one and i'm not totally sure what that is as it gives a slightly different result (100/1-0.05=105.2631).....

Thanks!!

 

[Npl]

Hello guys,

this time it's a question from me, not KILER...

Basically i want to know the difference between these two:

x*1.053

and

x/(1-0.053)


I've always used the first one to gross up a number to a percetage of it (for example 100*1.05=105), but now some guy here is using the second one and i'm not totally sure what that is as it gives a slightly different result (100/1-0.05=105.2631).....

Thanks!!

In the first you take x as 100% and then calculate 105.3%
The second takes x as 94.7% and then calculate 100% (which aint the same as the above)

You get the required % y from the base % x in the following manner:
y/105.3 = x/100
y/100 = x/94.7

 

[Captain Chickenpants]

x/(1-0.053) =
x * (1/(1-0.053)) =
x * (1/0.947) =
x * 1.0559662090813093980992608236536.



They are not equivelant. Not sure what they other guy is doing but your method is the normal one for what you are trying to do.

CC

 

[[maven]]

The difference between the two is (p^2*x)/(p - 1).

 

[London Geezer]

That's what i said, but apparently he wants to keep his method as it's "company procedure".... I'm just not sure what he's trying to do to be honest...

 

[Npl]

Neither method is always right or wrong.
if you want to know how your current money (100%) grows with 5.3 % Rendite (right word?), use the first one.
if you got a nice new dress 5.3 % cheaper and want to know its full price (100%), use the second

 

[_xxx_]

Rendite (right word?)

would be "yield" in this case

 

[London Geezer]

Oooh right, so the first one is to get a number if i know the 100% figure and the percentage. The second is to get the 100% figure if i only have the "discounted" figure... Thanks!