Excel & Business Math Video/Class Project #23 Important Formulas for Increase & Decrease Problems: (8 Awesome Examples)

Transcription

1 Topics Excel & Business Math Video/Class Project # Important Formulas for Increase & Decrease Problems: ( Awesome Examples) 1) Increase Decrease Problems... 1 ) Increase Example with: Table Method, Diagram Method and List of all Formulas... ) Decrease Example with: Table Method, Diagram Method and List of all Formulas... ) Example 1: Stock Market Drop... ) Example : Go to Yahoo Finance to get Market Values... ) Example : Iowa Farm Value Example... ) Example : Markdown and Markup Examples... ) Example : Last Year s Sales Example... ) Example : Stock Prices for Individual Stocks... 1) Increase Decrease Problems

2 1 1 1 A B C D E F G Increase / Decrease Problems: Problems where you have a amount that changes over time, either up or down (increase or decrease), and results in an End amount. Think of house prices, stock value, earnings for a company, savings account balances... Basic Change Formula: Amount + Change (up or down) = End Amount. Increase example: 0 + = 0 Decrease example: = 0 Increase in Your Savings Account Amount Change End Amount $0.00 $.00 $0.00 =A+B Decrease in Your Savings Account Amount Change End Amount $0.00 -$.00 $0.00 =A1+B1 Increase Decrease Problems Page 1 of

3 A B C D E F G H I J K L M Increase Example: Savings Account $0 $0 of Month Increase / Decrease Formula Terms: End of Month Old Term: New Terms: New Terms: Formula Base = (Base) = $0 0.00% ** is always 0% Part = End (Part) = $0 = = / % ** is what you multiply by to get Change (Part) = Change Part - $ ** Sign tells you whether the problem is an Increase (+) or Decrease (-) of Change (ROC) = ROC Change Part/ % ** of Change is what you multiply by to get Change Part Test s: * $0 Check =E*E Change Part *ROC $ Check =E*E Draw a Picture to help you "see" Increase Problem and relationship between Terms: Change Part ROC $0 $ 0.00%.00% $0 0% Totals $0 0.0% With these relationships between the terms and numbers, we can create many different formulas: Term: Formula: Result - Change Part $0 =C-D / $0 =C/E Change Part/ROC $0 =D/F * $0 =D*E * (1 + ROC) $0 =D*(1+F) + Change Part $0 =D+D / 0% =C/D 1 + ROC 0% =1+F Change Part - $ =C-D Change Part * ROC $ =D*F ROC ( - )/ % =(C-D)/D ROC /- 1 % =C/D-1 ROC - 1 % =E-1 Time Increase Methods & Formulas Page of

4 A B C D E F G H I J K L M Decrease Example: Savings Account $0 $0 of Month Increase / Decrease Formula Terms: End of Month Old Term: New Terms: New Terms: Formula Base = (Base) = $0 0.00% ** is always 0% Part = End (Part) = $0 = = / % ** is what you multiply by to get Change (Part) = Change Part - -$ ** Sign tells you whether the problem is an Increase (+) or Decrease (-) of Change (ROC) = ROC Change Part/ % ** of Change is what you multiply by to get Change Part Test s: * $0 Check Change Part *ROC -$ Check Draw a Picture to help you "see" Decrease Problem and relationship between Terms: Change Part 0 ROC $0 -$ 0.00% -.0% $0 0% Totals $0 0.00% With these relationships between the terms and numbers, we can create many different formulas: Term: Formula: Result - Change Part $0 =C-C / $0 =C/E Change Part/ROC $0 =C/E * $0 =B*E * (1 + ROC) $0 =B*(1+E) + Change Part $0 =B+C / 0% =C/B 1 + ROC 0% =1+E Change Part - -$ =C-B Change Part * ROC -$ =B*E ROC ( - )/ -% =(C-B)/B ROC /- 1 -% =C/B-1 ROC - 1 -% =E-1 Time Decrease Methods & Formulas Page of

5 A B C D E F G H The Nightly News reported that on Monday //01, the DJI Stock Market fell by.0% with the largest dollar value drop in its history of $1,1.1. What was the starting Stock Market Value and the Ending Stock Market value? Terms: Description Formula Amount $ Value of DJI Stock Market at of Day / $,0.0 =D/D $ Value of DJI Stock Market at End of Day * $,.0 =D*D % we multiply by to get End 1+ ROC.% =1+D Change Part $ Amount drop in DJI Stock Market -$1,1.1 of Change (ROC) % drop in DJI Stock Market -.0% = + Change Part Check: $,.0 =D+D ROC = / -1 Check: =D/D-1 Change Part of Change (ROC) $,0.0 -$1, % -.1% $,.0.0% Total $,.0.0% Term: Formula: - Change Par / Change Part/ROC * * (1 + ROC) + Change Part / 1 + ROC Change Part - Change Part * ROC ROC ( - )/Be ROC /- 1 ROC - 1 Example 1 Stock Market Drop Page of

6 A B C D E F G H I J K You suspected that the Nightly News report on Monday //01 round the percent used to describe the stock market fall ("the DJI Stock Market fell by.0%") So you went to Yahoo Finance ( and looked up the actual Start and End Stock Market Values so you could calculate the unrounded % fall in the market. Terms: Description Formula Amount DJI Stock Market Value before open,0. DJI Stock Market Value after close,. What you multiply by to get End / 0. =D/D Change Part DJI Stock Market $ Drop in Value - Change -1,1.1 of Change (ROC) DJI Stock Market % Drop in Value =D-1 ROC = Change/ Check: =D/D Check if two ROC are equal Check: TRUE =D=D Change Part of Change (ROC) $,0. -$1, % $,. 0. Total $,. 0. Term: Formula: - Change Part / Change Part/ROC * * (1 + ROC) + Change Part / 1 + ROC Change Part - Change Part * ROC ROC ( - )/ ROC /- 1 ROC - 1 Example Yahoo Market Values Page of

7 A B C D E F G H I The value of Iowa farmland increased.% this year to a statewide average value of $1 per acre. How much per acre did the Iowa farmland increase this year (Round to the dollar). Terms: Description Formula Amount Iowa farmland statewide average value at Start of Year / $1,0. =D/D Iowa farmland statewide average value at End of Year $1,.00 What you multiply by to get End 1 + ROC.0% =1+D Change Part Round to Dollar Change Part Increase in Iowa farmland ave. value - $. $.00 =ROUND(D,0) % Increase in Iowa farmland statewide of Change average value for year.0% Term: Formula: - Change Part Change = * ROC Check: $. =D*D / End = + Change Check: $1,.00 =D+D Change Part/ROC * Change Part of Change * (1 + ROC) + Change Part $1,.00 $..0%.0% / 1 + ROC $1, % Change Part - Change Part * ROC ROC ( - )/ ROC /- 1 Total $1,.00.0% ROC - 1 Example Iowa Farm Value Page of

8 1 1 1 Markdown A B C D Original price of the Lego set $.0 Markdown -% ROC Reduced Price $. End = Beg *(1+ROC) =B*(1+B) Check: 0% = 1 + ROC =1+B Check: $.0 = / =B/B Markup Original price for generator before Seattle Wind Storm $00.00 Markup 0% New Price $0.00 End = Beg *(1+ROC) =B*(1+B) Check: $0.00 Amount of Change =B*B Check: $00.00 = Change Part/ROC =B1/B Example Markdown and Markup Page of

9 A B C D E F G H The Nightly News reported that the GE Company has sales this year that were.% of last year's sales. If last year's sales were $,0,00,000, what were this year's sales? What was the of Change? Terms: Description Formula Amount Last Year's Sales $,0,00, This Year's Sales * $,1,,00.00 =D*D What you multiply by to Get End (How Many Pennies This Year for Every $1 Last Year).0% Change Part $ amount that Sales dropped from Last Year - -$,,00.00 of Change (ROC) % that Sales dropped from Last Year % =D-1 Change Part = ROC * Check: -$,,00.00 =D*D ROC = Change Part/ Check: -0. =D/D Change Part of Change (ROC) $,0,00, $,, % -.0% $,1,, % Total $,1,, % Example Last Years Sales Page of

10 A B C D E F G H Stock //01 of Change or % Over Company Name Symbol /1/00 Price Current Price Period Check Amazom.com AMZN % 0 /(1 + ROC) McDonald's MCD.. 1.%. Merck MRK..0.1%. Citigroup C 1.0..%. Microsoft MSFT.0.00.% Bank of America BAC % 0. Wal-Mart WMT % 0.0 Company Name Stock Symbol 1/1/01 Price //01 Current Price of Change or % Over Period Check Amazom.com AMZN % 0 McDonald's MCD.1. -.%. Merck MRK %. Citigroup C.1. -.%. Microsoft MSFT % Bank of America BAC % 0. Wal-Mart WMT % 0.0 Example Stock Prices Page of