How do I use integration to work out the area under a curve?

P

Penfold1981

I'm trying to use Excel to work out some targets and I know I want a 4%
reduction over the year- i.e. I had 100 last year and want 96 this year, so
how do I work out how many I need to record in each financial quarter to make
that happen? It wouldn't be one per quarter because that would give me a
'flat-line' target and not a decreasing trajectory. Apparently there's a
formula, possibly something to do with integration and working out the area
under a curve? Can anyone help??!
 
D

David Biddulph

If you've got 100 in A1, and you want to reduce to 96 over 4 quarters, try
=A1*(1-4%)^(1/4) and copy down.
I'm not sure of the relevance of your "area under a curve"?
 
D

Dana DeLouis

Hi. Just to add. The rate % you want to use is:
=RATE(4,,-100,96)

The value at Q1 is:
=FV(rate,1,,-100)
$98.98
....

And your 4th Q
=FV(rate,4,,-100)
$96.00
 

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