Reversing POWER Formula:with greater algebra skills help me with below formula?

All,

Could someone with greater algebra skills help me with below formula?

Cell F2 contains 0.5461%
Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%

I am trying to create a formula that reverses the above calculation. I
would receive cell G2 data from a system (6.7542%)and would need to
calculate in Excel non-annualized data in cell F2 (0.5461).

I remember tackling something like this many, many years ago but can't
quite summon the required math (perhaps a logarithm)?

Thanks in advance for any ideas.

Regards,
Joel
Using Excel 2003

On 30 Jun 2005 16:03:31 -0700, soroosj@swbell.net wrote:

>All,
>
>Could someone with greater algebra skills help me with below formula?
>
>Cell F2 contains 0.5461%
>Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%
>
>I am trying to create a formula that reverses the above calculation. I
>would receive cell G2 data from a system (6.7542%)and would need to
>calculate in Excel non-annualized data in cell F2 (0.5461).
>
>I remember tackling something like this many, many years ago but can't
>quite summon the required math (perhaps a logarithm)?
>
>Thanks in advance for any ideas.
>
>Regards,
>Joel
>Using Excel 2003


=POWER(G2+1,1/12)-1

--ron

Hi Joel,

This works for me

=(G2+1)^(1/12)-1

--

HTH

RP
(remove nothere from the email address if mailing direct)


<soroosj@swbell.net> wrote in message
news:1120172611.341129.11670@g43g2000cwa.googlegroups.com...
> All,
>
> Could someone with greater algebra skills help me with below formula?
>
> Cell F2 contains 0.5461%
> Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%
>
> I am trying to create a formula that reverses the above calculation. I
> would receive cell G2 data from a system (6.7542%)and would need to
> calculate in Excel non-annualized data in cell F2 (0.5461).
>
> I remember tackling something like this many, many years ago but can't
> quite summon the required math (perhaps a logarithm)?
>
> Thanks in advance for any ideas.
>
> Regards,
> Joel
> Using Excel 2003
>

Just to be different...

=NOMINAL(G2,12)/12

Are you trying to calculate effective rate by chance in G2?
HTH :>)

--
Dana DeLouis
Win XP & Office 2003


<soroosj@swbell.net> wrote in message
news:1120172611.341129.11670@g43g2000cwa.googlegroups.com...
> All,
>
> Could someone with greater algebra skills help me with below formula?
>
> Cell F2 contains 0.5461%
> Cell G2 contains =POWER(F2+1,12)-1, which equals 6.7542%
>
> I am trying to create a formula that reverses the above calculation. I
> would receive cell G2 data from a system (6.7542%)and would need to
> calculate in Excel non-annualized data in cell F2 (0.5461).
>
> I remember tackling something like this many, many years ago but can't
> quite summon the required math (perhaps a logarithm)?
>
> Thanks in advance for any ideas.
>
> Regards,
> Joel
> Using Excel 2003
>

Thanks for above responses. This is exactly what I needed!

You didn't answer Dana's question. I would be interested to know as well.

--

HTH

RP
(remove nothere from the email address if mailing direct)


<soroosj@swbell.net> wrote in message
news:1120227014.922912.252100@o13g2000cwo.googlegroups.com...
> Thanks for above responses. This is exactly what I needed!
>

Hi. What we're trying to say is that your equation may be correct. We just
want to point out that there seems to be a big difference from entering
0.5461% and returning 6.7542%. If you changed your equation slightly to
include the "/12" part...

=POWER(0.5461%+1,12)-1
to this..
=POWER(0.5461%/12+1,12)-1

You would get the same answer as
=EFFECT(0.5461%,12)

which would be 0.5475%.
Again, just thought we would mention it. :>)
--
Dana DeLouis
Win XP & Office 2003


"Bob Phillips" <bob.phillips@notheretiscali.co.uk> wrote in message
news:%23o$2TSofFHA.1416@TK2MSFTNGP09.phx.gbl...
> You didn't answer Dana's question. I would be interested to know as well.
>
> --
>
> HTH
>
> RP
> (remove nothere from the email address if mailing direct)
>
>
> <soroosj@swbell.net> wrote in message
> news:1120227014.922912.252100@o13g2000cwo.googlegroups.com...
>> Thanks for above responses. This is exactly what I needed!
>>
>
>