equation help

[bflan0524]

stupid question, i am losing my mind
trying to do an equation
Sales Person A owns a relationship for 6 months it begins with 25,000 balance, ends up being worth 21,000
trying to get a prorated % increase/decrease value

i did $21,000*(6/12)-$25,000*(6/12)/(25,000*(6/12))= -16%

however doing it on a calculator i was getting -4%
and by hand i got i think 2% haha

any help would be appreciated

 

[shg]

	A​	B​	C​
1​	Start	25000​
2​	End	21000​
3​	Change	-16%​	B3: =B2/B1 - 1

 

[bflan0524]

thank you
so does that make sense though when considering you are prorating it
so the 25,000 ends up being 12,500 and the 21,000 ends up being 10,500
so 12,500/10,500= 0.84%
im so confused haha

 

[shg]

Prorating? You mean annualize?

 

[bflan0524]

yes

 

[bflan0524]

not sure if this would help or add confusion but this is what i was attempting to do

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

 

[shg]

	A​	B​	C​
1​	Start	25,000​
2​	End	21,000​
3​	Change	-16.00%​	B3: =B2/B1 - 1
4​
5​	Months	6​
6​	Annualized return	-29.44%​	B6: =(B3+1)^(12/B5) - 1

 

[bflan0524]

wouldnt you have to incorporate something from the first equation with the 71K

 

[shg]

They could be combined in lots of different ways, but if this is for an incentive plan, someone has already decided how they will be combined. Ask them.