repeat discounting X amount of times

[princesslisa000]

I can't figure out how to repeat a calculation X amount of times. Specifically, i want to discount 2,020 by 10% X amount of times. So it should look like this (if X=3):
((2,020-(1-.1))(1-.1))(1-.1)
which should equal 1472.58

any suggestions?

 

[Asala42]

How about:

=2020*(1-i)^x

Where i = 10% and x = 3

Adam

 

[Jay Petrulis]

Hi,

Are you sure you are applying the discount correctly?

Adam's suggestion is correct, but if you are using this in a financial calculation (IRR, NPV, etc.), you would use:

Amount/(1+rate)^number of periods

=2020/(1.1^3) = 1517.66.

I think you want Adam's answer, but this is another understanding of discount rates.

Bye,
Jay

 

[Mark W.]

On 2002-04-09 13:30, Jay Petrulis wrote:
Hi,

Are you sure you are applying the discount correctly?

Adam's suggestion is correct, but if you are using this in a financial calculation (IRR, NPV, etc.), you would use:

Amount/(1+rate)^number of periods

=2020/(1.1^3) = 1517.66.

I think you want Adam's answer, but this is another understanding of discount rates.

Bye,
Jay

My bet is that princesslisa is in retailing, and she's marking down her inventory.