Calculate according to the values of adjacent boxes

[nordinho]

In the chart I attached there are 20 columns and 7 rows.

The calculations are as follows:

K in first period - 8 (given)

product per worker (y) - 2*K^(1/3) = 4

Total invesment - s*y - s (savings rate) is given as 0.1 and y was calculated in the previous line. s*y = 0.1*4 = 0.4

Depreciation on capital - deperciation rate is set at 2.5% (0.0025) so the depreciation is 0.0025*k = 0.0025*8 = 0.2

Net investment = Total investment (0.4) - Depreciation (0.2) = 0.2

Consumption per worker = product per worker (4) - Net investment (0.4) = 3.6

Growtn in product per worker - Can only start calculating from next period. It is (yt-yt-1)/yt-1. (Next year's product per worker minus this year's product per worker, the answer is divided by last year's product per worker).

How do I make excel do these calculations? Thank you.

[darkyam]

Welcome to the forum. Please take a moment to read the rules and change your title in accordance with rule 1. http://www.excelforum.com/forum-rule...rum-rules.html

[zbor]

See here:

Copy of Book1(1).xls

Also, few things:

1. Rows are horizontal, and columns vertical, so 20 rows and 7 columns.
2. (yt-yt-1)/yt-1. I think it's (now - previous) / now

Therefore, first one is VALUE ERROR (no previous value), Second is OK and other are DIV/0 errors (now is 0).

You can hide errors, of course, but I'm wondering is logick ok?

[nordinho]

Thank you!