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crash2006

Does Anyone Know How To Calculate This On A Calculator

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10000 * (1+.04) negative exponent of 4 on a calculator.?

I've no idea to be honest.

I'm from the pre-calculator generation - never used one much. I'm rubbish with them

But I'd use Excel. Although I have no idea what your sum means :)

No idea what a "negative exponent of 4" is.

I just know if I had a calculation in my head, I can do it on paper, or work it out in Excel. But I have to know/understand what I mean first.

Edited by ScaredEitherWay

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10000 * (1+.04) negative exponent of 4 on a calculator.?

10000/1.04/1.04/1.04/1.04 ( which is 10000*(1+.04)^(-4) ). This gives your 4 year discount factor, discounted at a rate of 4%.

Edited by kilroy

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I've no idea to be honest.

I'm from the pre-calculator generation - never used one much. I'm rubbish with them

But I'd use Excel. Although I have no idea what your sum means :)

No idea what a "negative exponent of 4" is.

I just know if I had a calculation in my head, I can do it on paper, or work it out in Excel. But I have to know/understand what I mean first.

the sum is about interest rate and the lost of the value money, or to calculate the original investment 4 years based on interest compounding.

Edited by crash2006

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10000 * (1+.04) negative exponent of 4 on a calculator.? or do i just need to do it in decimal?

do you mean the what is e^(-4) ??

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the sum is about interest rate and the lost of the value money.

are you asking for example. what will £10,000 be worth in say 10 years if inflation is 4% a year?

if so that is done

£10,000 x (0.96^10)

= £6,648.32 in todays money

Edited by cells

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10000 * (1+.04) negative exponent of 4 on a calculator.? or do i just need to do it in decimal?

Well it depends on the calculator but you could try pasting this formula in an Excel spreadsheet:

=EXP(0.04*(-4))

I assume you are calculating the value of something after 4 periods with 4% rate of depreciation continuously compounded?

For example a house would be worth only 85.21% of its original value after 4 years of price declines at an annual 4% rate of decline continuously compounded?

If not - just ignore me. I had a bottle of wine for lunch.

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10000 * (1+.04) negative exponent of 4 on a calculator.? or do i just need to do it in decimal?

1000 * shift - Open Bracket 1 + 0.04 Shift - closed bracket ans =

Varies on which type of calculator you use

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1000 * (1.04)^-4

oh your trying to figure out depreciation, your doing it wrong

if you have £1000 and inflation is 4%. it will be worth £849 in 4 years time

what you seem to be doing is taking negative time and positive appreciation, instead you need to take positive time and negative appreciation.

so to get a 4% drop you times your figure by 0.96 (which is 100% minus 4% which is 96% or times by 0.96)

so if you have £1000 depreciating by 4% you times that by 0.96 for every year of depreciation.

so after one year it is 1000 x 0.96

after two years it is 1000 x 0.96 x 0.96

after 3 years it is 1000 x 0.96 x 0.96 x0.96

after X years it is 1000 x 0.96^x

what your doing will give you a wrong answer. to prove this, take £1000 depreciating by 50% a year. it will be £500 after one year and £250 after the next.

your method gives 1000 x (1.50^-2) = £444.44

the correct method of 1000 x (0.5^2) = £250

hope that helps

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Definitely something for Excel.

Then you can sit and view it all on the screen with the joy of changing values like: the amount, the %age, the time.

And then add in other factors as they occur to you.

I LOVE Excel for this.

The ability to see and save and change and add new items over time.

Not like a calculator, a few clicks and it's all over. Finger in the wrong place and it's spoilt.

But I'm a girl ... and reading those two sentences back it reads like the difference between a relationship and a quickie :)

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oh your trying to figure out depreciation, your doing it wrong

if you have £1000 and inflation is 4%. it will be worth £849 in 4 years time

what you seem to be doing is taking negative time and positive appreciation, instead you need to take positive time and negative appreciation.

so to get a 4% drop you times your figure by 0.96 (which is 100% minus 4% which is 96% or times by 0.96)

so if you have £1000 depreciating by 4% you times that by 0.96 for every year of depreciation.

so after one year it is 1000 x 0.96

after two years it is 1000 x 0.96 x 0.96

after 3 years it is 1000 x 0.96 x 0.96 x0.96

after X years it is 1000 x 0.96^x

what your doing will give you a wrong answer. to prove this, take £1000 depreciating by 50% a year. it will be £500 after one year and £250 after the next.

your method gives 1000 x (1.50^-2) = £444.44

the correct method of 1000 x (0.5^2) = £250

hope that helps

not necessarily, he coudl be figuring the pv today of 10000 in 4 years time using a 4% flat discount curve

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ok going to make it simple

postive compound

£1000 @ 4% interest for lets say 3 years (1 + .04)^3 = 1.124864 1000 * 1.124864 = £1123.86p

reverse compounding.

now just the reverse say i have £1123.86 * (1+.04)-^3 = should = 1000

if you get my idea.

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ok going to make it simple

postive compound

£1000 @ 4% interest for lets say 3 years (1 + .04)^3 = 1.124864 1000 * 1.124864 = £1123.86p

reverse compounding.

now just the reverse say i have £1123.86 * (1+.04)-^3 = should = 1000

if you get my idea.

and presuming you have no power button on your calculator it is

£1124.86p/1.04/1.04/1.04 = 1000

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haha just found out my mistake sorry guys but thanks for the help.

£1123.86 / (1+.04)^3 seems like the calculators dont except the other method.

Edited by crash2006

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QUOTE(cells @ Aug 7 2007, 04:00 PM) post_snapback.gifoh your trying to figure out depreciation, your doing it wrong

if you have £1000 and inflation is 4%. it will be worth £849 in 4 years time

what you seem to be doing is taking negative time and positive appreciation, instead you need to take positive time and negative appreciation.

so to get a 4% drop you times your figure by 0.96 (which is 100% minus 4% which is 96% or times by 0.96)

so if you have £1000 depreciating by 4% you times that by 0.96 for every year of depreciation.

so after one year it is 1000 x 0.96

after two years it is 1000 x 0.96 x 0.96

after 3 years it is 1000 x 0.96 x 0.96 x0.96

after X years it is 1000 x 0.96^x

what your doing will give you a wrong answer. to prove this, take £1000 depreciating by 50% a year. it will be £500 after one year and £250 after the next.

your method gives 1000 x (1.50^-2) = £444.44

the correct method of 1000 x (0.5^2) = £250

hope that helps

not necessarily, he coudl be figuring the pv today of 10000 in 4 years time using a 4% flat

,

to see how much £10000 would cost me now for 4 years in the future to recieve the £10000, ie what its worth today.

10,000 * (1.04)^-4 = £8,548.04p i would need to invest if i wanted £10,000 in 4 years time. or the cost to buy money/bond etc..something when the contract matures.

Edited by crash2006

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