=P*((((1+R/400)^((1+N)/3))-1)/(((1+R/400)^(1/3)-1))-1) Explain the formula?

Answer 1

You have two too many parenthesis between the times sign and 1. It does not look as if the whole formula is here to explain because I see a division sign at the end of the formula, but just for what you have here...P is multiplied times the quantity one plus R which is then divided by 400 and then taken to the power of the quantity one plus N divided by three which is all then subtracted by one before the multiplication of P....Now, what is behind the division sign us unknow and may explain the additional parenthesis. This is not a complete formula and can not be explained because of what is not here to explain.

Answer 2

I guess you have picked this up from an Excel Work sheet.

This simply calculates the cumulative total of priniciple. But R/400 Should be R/100 only for any reason.

The left hand side and right hand side parantheses have to match in order to have a valid formula in excel. However we can say that your equation is correct it is intended as below

= P x (1+ R/400) power (1+N)/3 Minus 1

I wouldn't know if it is a valid equation. But if the equation is in the following form, it would work

= P*((1+R/400))^(((1+N)/3)-1)

Try this formula in Excel

good Luck

Answer 3

Why are there so many parenthesis? If your question is to explain what the signs, then:
when you say a^b, then its a raised to the power of b. the ramaining are all the usual +,-, and all.
May be you should have written the question better.

Answer 4

I think you are calculating the amount after a a fixed time:
P=principal
R=quarterly rate
(1+N) /3=Number of years

I=P(1+R/100)^n

Then you calculate amount.

Answer 5

this is the formula for compound intrest

P- principal amount
R- rate of intrest
N-no of years
A- Amount after n years


A=P*((((1+R/400)^((1+N)/3)