calculate gross amt of money after interest added gives....

[andyc209]

Please help,

we want to calculate a gross amount of money that after interest is added gives a gross amount of money, but then when we have the gross can remove the interest and get back to the net value.

i.e. we know

Net Amount = 100000
One-off charge = 2%
Interest = 1% over 3 months = 3%

can we find the gross figure (we think it is 105250) that when we back calculate to the net gives us the 100000 again.
Our problem is that if we take the calculated gross of 105250 and take 5% off we get 99987.5

no matter what we do we cannot work a formula out that would give us an accurate gross that when the 5% is removed off it gives us the 100000 again.
Is it the way the back calulation is done and you can never get back to the original, we are totally puzzled.

The best we can do is:

Gross = 100000 + (100000+((0.02+0.03) x 100000)) x (0.02+0.03)

but again this gives us 105250 that if you do:

5% of 105250 is 5262.50
105250 - 5262.50 = 99987.50

which is not 100000 :?:

Please help.

 

[stapel]

we want to calculate a gross amount of money that after interest is added gives a gross amount of money, but then when we have the gross can remove the interest and get back to the net value.

i.e. we know

Net Amount = 100000
One-off charge = 2%
Interest = 1% over 3 months = 3%

I'm sorry, but I cannot make heads or tails of this...?

Please reply with the exact wording of the exercise, just as it appears in the assignment. Thank you!

Eliz.

 

[tkhunny]

Perhaps a glaring example will expose the error.

100 + (50% of 100) = 100 + 50 = 150

150 - (50% of 150) = 150 - 75 = 75 <== ????? Why didn't we get back to 100?

Try this...

100 + (50% of 100) = 100 + 50 = 150

150 - (50% of 100) = 150 - 50 = 100 <== THERE it is!

Technically, you are switching bases midstream. Don't do that.

Let's see if you can figure out how to fix it.

 

[andyc209]

I will try again to explain..

we have 100,000 net cash request
we want to charge 2% fee and 1% interest every 3 months of the loan period (i.e. 3%)
Therefore:

100,000 + (2% of 100,000) + (3% of 100,000) = 105250

The problem is that if we want to show the borrower they are borrowing their original request of 100,000 + interest, if we take off 5% from 105250 it leaves us with 99987.50.

We want to know if there is a formula we can use to calculate a gross loan figure that if we take 5% off it leaves us with the original 100,000.

Hope that is clearer

 

[Denis]

100,000 + (2% of 100,000) + (3% of 100,000) = 105250

Hope that is clearer

NO, not clearer!

To start: 100,000 + (2% of 100,000) + (3% of 100,000) = 100,000 + 2,000 + 3,000 = 105,000

Where did you get that problem? Your teacher?
Post it in it's ORIGINAL format: change NOTHING!
If you want an amount less 5% of it to equal 100,000, then: a - .05a = 100000 : .95a = 100000 : a = 105263.16 (rounded)

 

[stapel]

As was explained (very clearly) in an earlier reply, you cannot subtract five percent of 105 and get back to 100. Please now read tkhunny's reply, and follow the given steps and reasoning. If you are still unclear on how percentages, markups, and markdowns work, then please study some of the lessons avaiable online:

. . . . .Google results for "percent markup markdown"

Once you have gained an understanding of how to work with markup/markdown exercises, please attempt this exercise again. If you still have trouble, then please reply as requested: Provide the exact text of the exercise, word-for-word as it appears in the assignment. Thank you.

Eliz.