Hello everyone,
I come for a practical problem: I want to identify a growth coefficient according to several criteria.
I have a store of value in year N,
This reserve is increased or drained each year over X years according to specific conditions.
In the last year of drainage, the reserve must be equal to zero (reserve exhausted).
However, the value of the reserve is not fixed at (value Y-1 + inputs year Y – drainage year Y).
Its value indeed follows a growth coefficient ε to be determined so that (growth ε of each year + inputs – drainages) = 0 in the final year.
I am therefore looking for a way to determine ε according to the given parameters (starting value / inputs / drainages / number of years) to start from my reserve of value and arrive at zero in the final year.
Example: in the example below I have a base of 1,800,000 this year.
At the date of the final output, in 8 years, this value should be zero.
Meanwhile, I added 46,589 in 2024 and drained 2,855,000 between 2024 and 2031.
In order to be able to respect these parameters, my base of 1,800,000 must increase by ε = 10.1508% each year in a linear way.
It is this percentage increase (found here by manual multiple tries) that I want to calculate knowing only my initial, final value, inputs and drainages and the number of years.
(the contributions are counted here as negative and the drainages as positive because we place ourselves from the point of view of the drainer / provider)
Could you please guide me on how to proceed?
Thanks a lot !
(Sorry in advance if this question is not asked in the right category).
I come for a practical problem: I want to identify a growth coefficient according to several criteria.
I have a store of value in year N,
This reserve is increased or drained each year over X years according to specific conditions.
In the last year of drainage, the reserve must be equal to zero (reserve exhausted).
However, the value of the reserve is not fixed at (value Y-1 + inputs year Y – drainage year Y).
Its value indeed follows a growth coefficient ε to be determined so that (growth ε of each year + inputs – drainages) = 0 in the final year.
I am therefore looking for a way to determine ε according to the given parameters (starting value / inputs / drainages / number of years) to start from my reserve of value and arrive at zero in the final year.
Example: in the example below I have a base of 1,800,000 this year.
At the date of the final output, in 8 years, this value should be zero.
Meanwhile, I added 46,589 in 2024 and drained 2,855,000 between 2024 and 2031.
In order to be able to respect these parameters, my base of 1,800,000 must increase by ε = 10.1508% each year in a linear way.
It is this percentage increase (found here by manual multiple tries) that I want to calculate knowing only my initial, final value, inputs and drainages and the number of years.
(the contributions are counted here as negative and the drainages as positive because we place ourselves from the point of view of the drainer / provider)
Could you please guide me on how to proceed?
Thanks a lot !
(Sorry in advance if this question is not asked in the right category).