Math help

  • Thread starter Thread starter LatinAviation
  • Start date Start date
L

LatinAviation

I am no math expert, so I apprciate the insight.

In Excel, if I have a base of 100 and I gross it up by 10%, I've see
two equations:

=100*(1+10%) and;
=100/(1-10%)

can someone explain to me which is the best one and also th
differences between the two?

Thank you
 
LatinAviation, 100 * (1 + 10%) is the correct equation. Say you make $500,
increasing it by 10% would be $500 * 1.1 = $550. The 100 * (1 - 10%) would
yield $500 * (1 - .1) = $500 * .9 = $450. HTH
 
Thanks, Michael.

Can someone explain to me what this does?
=100/(1-10%)


I am essentially trying to understand why two different co-workers are
using different methodologies which both believe are correct.
 
Essentially, the user who is multiplying is INFLATING the base by a
growth rate of 10%. The user who is dividing is DEFLATING by a growth
rate of -10%, which does the same thing as inflating by 10%.
Multiplication and Division are recipricol properties, so they should
result in the same answer.

Use whichever one is more logical for someone to understand when
looking at it.
 
The two equations aren't exactly identical.
The first equation:
100*(1+10%)=100*11/10=100*1.1=110
The second equation:
100/(1-10%)=100*10/9=100*1.1111...=111.111...
There's about a 1% difference between the two equations. The first
equation increases 100 by exactly 10%. The second equation increases
by 11.1%
 
Back
Top