RE: Function for decreasing salary by 2.5%

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Alright here's a generic example that I'm hoping you can apply to your
problem because I'm a little confused on what you need. Assume your salary
this year (2005) is 50,000. Also assume you're salary has increased exactly
2.5% each year for the last 5 years. Here are the formula's and your
salary's for the previous 5 years:

2004: =50,000*(1-.025)=50,000*.975=48,750
2003: =48,750*(1-.025)=48,750*.975=47531.25
2002: =47531.25*(1-.025)=47531.25*.975=46342.97
2001: =46342.97*(1-.025)=46342.97*.975=45184.39
2000: =45184.39*(1-.025)=45184.39*.975=44054.78

You can also see that 50000*(1-.025)^5=44054.78 which is what we got in 2000
by taking each year step by step.

Does that make more sense?
--
Regards,
Dave


"Julie" wrote:

> Actually, I want the result (x), when multiplied by 2.5% to equal 44,863.
> And then for the previous year I want the result when multiplied by 2.5% to
> equal x. And so on for the five years.
>
> "David Billigmeier" wrote:
>
> > To get back to your 44,863 value you have to divide 43,742 by .975.
> >
> > The reason being 2.5% of 43,742 is not the same as 2.5% of 44,863.
> >
> > To go back 5 years use the formula =44,863*(1-.025)^5
> > --
> > Regards,
> > Dave
> >
> >
> > "Julie" wrote:
> >
> > > I get salary information for 2005. I want to take that salary back in time
> > > for five years by decreasing the amount by 2.5% per year. When I use the
> > > formula 44,863*(1-0.025) I get 43,742. But when I multiply 43,742 by 2.5% I
> > > get 1093.55. That number added to 43,742 is 44,836 (rounded), not 44,863.
> > > What am I doing wrong? (I submitted this question last night, but I cannot
> > > locate it anywhere and have not been notified of any replies, so I may or may
> > > not have submitted it properly. If duplicated elsewhere please excuse.)
.

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