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Excel Iteration problem

  1. #1
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    Excel Iteration problem

    Diff (0)

    I) Assets 10,000

    II) Liab 10,000
    a Others 8,000
    b Bank liab 1,887
    c Int charge 113



    III) Interest 113


    I am looking at this scenario

    I have assets total in Cell D6
    I have liability total in cell D8
    Liability is the total of three components
    Others + bank liability +Interest charge

    Now the challenging part

    Diff. between assets and liability should be bank liability
    bank liability attracts interest which forms part of liability as interest charge
    Interest is separately calculated @the rate of 6 % of the total bank liability in cell c15
    and then cell c15 is linked to cell c11


    is there any way this can be done either with formula or code currently I am doing it manually
    Difference in cell c4 , I keep manually adjusting in the cell c10
    till the diff becomes 0

    any VBA code would also do
    I am attaching the excel file for a better understanding

    Any help would be greatly appreciated

    regards
    Attached Files Attached Files

  2. #2
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    Re: Excel Iteration problem

    While it is, I think, usually possible to set these kinds of problems up and solve by "successive approximations" using circular references and such, I think the programming is a lot easier if we start by solving these as algebra problems. I did not follow your algebra, but it seems that these problems usually end up looking something like y=a+x+0.06*x, which can easily be solved for x. I suggest this (http://purplemath.com/modules/solvelin3.htm ) as an algebra refresher -- pay particular attention to page 3, where she introduces equations where x appears twice.
    Quote Originally Posted by shg
    Mathematics is the native language of the natural world. Just trying to become literate.

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    Re: Excel Iteration problem

    I agree with the above, being no financial expert the following might work

    c10 contains =(D6-C9)/1.06

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    Re: Excel Iteration problem

    Let me try and come back , i think this should help my cause

    Thanking you both once again

    regards

  5. #5
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    Re: Excel Iteration problem

    I tried the solution given but it was of little help ,

    I will explain the issue which i am currently facing in a detailed manner

    I have assets total in Cell D13
    I have lability total in cell D21
    Liab also includes current year profit component
    which is arrived from the profit and loss account

    Now the challenging part

    Diff. between assets and liability should be bank liab
    bank liability attracts interest which forms part of Profit and loss account as int charge - Cell D36
    Once the interest so arrived forms part of the profit figure -Cell D 41
    and then cell D 41 is linked to cell D 19


    is there any way this can be done currently I am entering the profit figure in Cell D19 manually
    any VBA code would also do

    I am attaching the work sheet for easy reference , inviting your kind attention in addressing the same

    regards
    Attached Files Attached Files

  6. #6
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    Re: Excel Iteration problem

    I am still not sure what your question is.

    If you are expecting D45 to be 0, it is zero, and, as I make changes to the various hard coded values, It remains 0 as the other values change. It appears to me that your "successive approximations" approach with the circular reference works just fine. Your description says that you are manually entering successive values from D41 into D19, but D19 contains the formula =D41. This creates a circular reference, but the iteration seems to converge quickly, and correctly for the few cases that I have tested. What problems are you having with the current circular reference with iteration enabled solution?

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