Solving an equation

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dividby0

Hi,

I'm working on a project in Financial Management.
I need to solve the following equation for the value of 'X' in MS
Excel

2X/(1+r1)^4 + 20/(1+r1)^6 + 30/(1+r1)^7 + 30/(1+r1)^8 + 10/(1+r1)^4 =
2X/(1+r2)^4 + 2X/(1+r2)^4
Where r1 = 21% and r2 = 17%

Help needed!

Regards
 
Hi,

Enter the following formula in cell B1

=2*A1/(1+A)^4+20/(1+A)^6+30/(1+A)^7+30/(1+A)^8+10/(1+A)^4-2*A1/(1+B)^4-2*A1/(1+B)^4

Then choose Tools, Add-in and put a check beside Solver and click OK.

Then choose Tools, Solver and set the target cell as B1 and the changing
cell as A1 and with a Value of 0.

Cheers,
Shane Devenshire
Microsoft Excel MVP
 
dividby0 said:
Hi,

I'm working on a project in Financial Management.
I need to solve the following equation for the value of 'X' in MS
Excel

2X/(1+r1)^4 + 20/(1+r1)^6 + 30/(1+r1)^7 + 30/(1+r1)^8 + 10/(1+r1)^4 =
2X/(1+r2)^4 + 2X/(1+r2)^4
Where r1 = 21% and r2 = 17%

Help needed!

Regards
Click to expand...


One could use either Solver or Goal Seek.
For Goal Seek, enter your two equations. (I've used Range names)

=2*x/(1+_R1)^4+20/(1+_R1)^6+30/(1+_R1)^7+30/(1+_R1)^8+10/(1+_R1)^4
=2*x/(1+_R2)^4+2*x/(1+_R2)^4

In another cell, subtract these two values.
Use Goal Seek to set this new function to zero by adjusting your x value.

Another option would be to solve the equation directly...

r1=.21
r2=.17

?(10*(r1*(r1*(r1*(r1+4)+8)+11)+9))/((r1+1)^8*(4/((r2+1)^4)-(2/(r1+1)^4)))
21.1940833919125
 
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