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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 |
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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... > 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 |
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Re: Solving an equation
dividby0 wrote:
> 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)+8)+11)+9))/((r1+1)^8*(4/((r2+1)^4)-(2/(r1+1)^4))) 21.1940833919125 -- HTH :>) Dana DeLouis |
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