Need Formula (Mathamatician Required)

[Murtaza]

Scenario:

Year2 Sales 1000
% Growth 8.8

Required:
Year1 Sales ??

Description:
I need the formula to calculate Year1 (previous year) sales on the basis of
current year sales figure & % growth.
This formula is not correct =Year2Sales - (Year2Sales * 8.8%).

Any gr8 mathamaticians we have?

Murtaza

 

[Jerry W. Lewis]

=Year2Sales / 108.8%

Jerry

 

[Dana DeLouis]

You were almost there. You need to take a percentage growth on year1 sales
to arrive at year2 sales. Basically, you are trying to solve for y1 in the
following...
y1 + gr*y1 = y2

y1 = y2 / (1 + gr)

(gr = .088, or 8.8%)

If you get stuck on similar problems, you can use the PV formula:

=PV(8.8%,1,0,-1000,0)

returns the same value.

 

[AC_VID]

Not sure what you are asking but I presume that you mean Y2sales = Y1sales +
8.8 %

If that is correct then formula is for Year1Sales: =(Year2Sales / 1.088)
which is $919.11
and $919.11 +8.8% gives $1,000.00

André

 

[Murtaza]

Thank you

You were almost there. You need to take a percentage growth on year1 sales
to arrive at year2 sales. Basically, you are trying to solve for y1 in the
following...
y1 + gr*y1 = y2

y1 = y2 / (1 + gr)

(gr = .088, or 8.8%)

If you get stuck on similar problems, you can use the PV formula:

=PV(8.8%,1,0,-1000,0)

returns the same value.