O/T Calling all MATHS geniuses

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I'm a bit rusty but I'll have a go:

Y+1 = (100/P) ^ (360/D)
(Y+1)^D = (100/P)^360
(Y+1)^(D/360) = 100/P
P*((Y+1)^(D/360)) = 100
P = 100/((Y+1)^(D/360))


....or what Seagull27 said

Aha yes. I got the same result as you but didn't click that 100*(Y+1)^(-D/360) is the same as 100/(Y+1)^(d/360).

I get stuck or go majorly wrong around the point where is stop:
Y=(100/P)^(360/D) -1
Y+1=(100/P)^(360/D)
log Y+1= log(100/P)^(360/D)
log Y+1= (360/D)*log(100/p)
STUCK


well, log(100/p) is the same as log 100 - log P, giving
log Y+1 = (360/d)(log 100 - log P)
then divide both sides by (360/d)
(log Y+1)(D/360) = log 100 - log P
add log P to both sides
log P + (log Y+1)(D/360) = log 100
take away (log Y+1)(D/360) from both sides
log P = log 100 - (log Y+1)(D/360)
using log powers (which was used earlier to go from log(100/p) to 100 - log P
log P = log (100/(Y+1)(D/360))
then de-log; the (D/360) gets applied to the (Y+1) as a power
P = 100/(Y+1)^(D/360)
 
Last edited:






Jul 24, 2003
2,289
Newbury, Berkshire.
Maths vs. RE
 

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ForestRowSeagull

Well-known member
Jan 6, 2011
988
SE London
I got some paper out and solved it now. What i'm surprised at is why the bloody hell do you need to know this ?! I thought maths was just for nerds to pleasure their autistic side.
 




ForestRowSeagull

Well-known member
Jan 6, 2011
988
SE London
Aha yes. I got the same result as you but didn't click that 100*(Y+1)^(-D/360) is the same as 100/(Y+1)^(d/360).




well, log(100/p) is the same as log 100 - log P, giving
log Y+1 = (360/d)(log 100 - log P)
then divide both sides by (360/d)
(log Y+1)(D/360) = log 100 - log P
add log P to both sides
log P + (log Y+1)(D/360) = log 100
take away (log Y+1)(D/360) from both sides
log P = log 100 - (log Y+1)(D/360)
using log powers (which was used earlier to go from log(100/p) to 100 - log P
log P = log (100/(Y+1)(D/360))
then de-log; the (D/360) gets applied to the (Y+1) as a power
P = 100/(Y+1)^(D/360)

Thanks, once I remembered the log rules I was fine. Hard one though
 


Codner's Crackpipe

Active member
Feb 25, 2005
190
Gosh, thanks everyone. Only on NSC could it be raining rain men.

I got some paper out and solved it now. What i'm surprised at is why the bloody hell do you need to know this ?! I thought maths was just for nerds to pleasure their autistic side.


It's a yield to price calculation for a Spanish 18 month treasury bill.
 














Fef

Rock God.
Feb 21, 2009
1,729
There was the constipated mathematician who worked it out with a pencil and paper.
When it got too hard he worked it out with axes and logs.

I'll get my coat.
 




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