text: For example, if you have a column containing numbers and want to calculate 10% of one of those numbers, you need to enter 10% in another cell, then use a formula using the asterisk as the multiplication operator. The calculator lets you determine monthly mortgage payments, find out how your monthly, yearly, or one-time pre-payments influence the loan term and the interest paid over the life of the loan, and see complete amortization schedules. The problem is this: You have a fixed monthly payment, a start date, and a given number of months. Completing the final sum of ratio amounts is a useful way to check that you have your ratio calculations correct, alliteratively you can use the ratio calculators on icalculator to check the math for you, lets look at how to use the ratio division calculator. This is the sum of the present value of cash flows. #N#% of Start Value. Free online Calculator that shows all the work for simplifying 2, 3 or more ratios! Type up to 15 numbers in the text boxes below then hit 'calculate'. So, if we wanted to find the slope at y 2 (z), we could use this calculation: Example: Calculate a Derivative in Excel. Identify the rows for the year you want. Calculating the future value of a present single sum with multiple interest rates. For example LCM of 15 and 20 is 60 and LCM of 5 and 7 is 35. Total interest ÷ 5 years = Yearly interest charged So, the interest paid by Mr. The net present value (NPV) of this investment will be the sum of the present values which is 159$. Calculating IRR can sometime become too complex. To calculate the future value of a monthly investment, enter the beginning balance, the monthly dollar amount you plan to deposit, the interest rate you expect to earn, and the number of years you expect to continue making monthly deposits, then click the "Compute" button. Net Present Value = NPV(rate,value1,[value2],…); where rate is the discount rate and the value1, value2…are the cash flows. Notes and major health warnings. Columns look like this: beginning budgeted amount, pay raise, improvements, ending budgets. I'm trying to re-code it all over again but it is still the same. Bonus Downloads. When you build a model in Excel, you are essentially writing a program to calculate a set of outputs from a set of inputs. Use this calculator to see how much you can save and how much quicker the loan will get paid off. Add or Subtract a Percentage see examples. How to figure out percentages: the term “per cent” is derived from the Latin per centum, meaning “by the hundred” or can be explained, as the portion of a quantity proportional to its whole relative to “one hundred”. For a present value of$1000 to be paid one year from the initial investment, at an interest rate of five percent, the initial investment would need to be $952. = (A1-INT (A1))*100 will return 45. Annual Interest Rate - The annual percentage interest rate your money earns if deposited. Investment Income Calculator. Once you have the result of your calculations, explain the answer in context. It's fairly easy to build a multi-scenario savings calculator in Excel, and we're going to show you how it's done. Excel 2016 2013 2010 2007 2003. P = The loan amount. Enter the interest payment formula. Advanced compound interest calculator for Excel. I saved it and closed it. Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. This is unlocked version of interest only loan calculator, distributed under commercial use license, which provides specific rights to a user, which allows use of this calculator in consulting and advisory business (resale or. C Program to find greatest in 3 numbers. Instead of adding the individual digits in the years of the asset's useful life, the following formula can be used to compute the sum of the digits: n (n+1) divided by 2, where n = the useful life in years. Suppose an account with an original balance of$1000 is earning 12% per year and is compounded monthly. The AVERAGE function can also be configured to ignore empty. How to avoid misleading numbers. Then, the sum of useful years = 3 + 2 + 1 = 6 Thus, the factors for each year will be 3/6, 2/6, 1/6 respectively for the 1st, 2 nd and 3 rd. Calculate Refund using Rule of 78 Loan / Sum of the Digits Method Definition: Rule of 78 is a method of computing yearly interest-refund on a permanent loan installment basis, where the amount should be paid off before the duration date. What formula can you use to sum total payments by year, based on the following worksheet:. ) which equals 78. Enter the original loan terms, the month and year of the loan origination and the number of months that have past since that time. There 0 complete calendar months between the two dates. Determines the ages for an age difference word. How to Calculate Aggregate Percentage. of years and the value is put in a variable d, which is earlier declared as. Returns the interest portion of a specified loan or annuity payment based on fixed, periodic payments and a fixed interest rate. The Average Calculator is used to calculate the average value of any set of numbers. Under Rule of 78 method, periods are weighted by comparing their numerical values to the sum of all digits of periods. Such skills can be useful in a wide variety of spheres of life. SYD is short for sum of years digits. The digit nine is omitted during calculation of Chaldean name number numerology. The PMT function uses the following syntax: =PMT(rate,nper,pv,[fv],[type]) As with the other common financial functions, rate is the …. The function should keep on adding the digits of each result, till the final sum is a single digit. b > 1 {\displaystyle b>1} F b : N → N {\displaystyle F_ {b}:\mathbb {N} \rightarrow \mathbb {N} } to be the following:. A reader sent me an interesting formula problem this week, so thought I'd share it as a formula challenge. Because this calculator is date sensitive, it is a suitable tool for calculating simple interest owed on any debt. Here you could get 0 heads, 1 heads, 2 heads or 3 heads, so we write the sample space as. What formula can you use to sum total payments by year, based on the following worksheet:. Final Balance. " Name the third cell "payment," and the fourth cell "value. Next calculate the “sum of the digits”. Then, the sum of useful years = 3 + 2 + 1 = 6 Thus, the factors for each year will be 3/6, 2/6, 1/6 respectively for the 1st, 2 nd and 3 rd. By default the ‘Analysis’ group will not be available. E-mail us one of your spreadsheets and we’ll convert it to a web page for you. Now enter the 3 numbers that you do know. The sum of the years' digits method is used to accelerate the recognition of depreciation. To calculate the future value of a monthly investment, enter the beginning balance, the monthly dollar amount you plan to deposit, the interest rate you expect to earn, and the number of years you expect to continue making monthly deposits, then click the "Compute" button. To account for inflation you would use the following formula PV = FV * (1 - i) n. While the SUM function is well known as it helps to add numbers, SUMPRODUCT helps in both cross multiplication and addition across multiple sets of data. The sum of digits method provides an allocation of the interest to accounting periods so that the proportion of each payment which is deemed to be an interest payment will reduce over the term of the lease, while the straight line method charges the same amount of interest to each accounting period. This concept is the basis of the Net Present Value Rule, which says that you should only engage in projects with a positive net present value. Calculating a Percent Distribution in Excel Percent distribution is a measure of how a metric (such as total revenue) is distributed among the component parts that make up the total. Divide SUMPRODUCT by SUM to get weighted average return. First, if a number is being divided by 10, then the remainder is just the last digit of that number. This function helps in calculating the depreciation of an asset, specifically the sum-of-years' digits depreciation for a specified period in the lifetime of an asset. As with the SUM-IF approach, the first and the last formulas need to be different from the interior formulas. It must be a value between 1 and number_payments. 0 for end of period (default if ommitted). " Thanks very much. Enter a formula in cell E6 using FV to calculate the future value of this investment. The Excel 2013 PMT function on the Financial button's drop-down menu on the Formulas tab of the Ribbon calculates the periodic payment for an annuity, assuming a stream of equal payments and a constant rate of interest. Sometimes, the present value formula includes the future value (FV). Excel 2016 2013 2010 2007 2003. It's fairly easy to build a multi-scenario savings calculator in Excel, and we're going to show you how it's done. If you do, Excel rounds the digits after the 15th place down to zero. The Planning & Guidance Center helps make it easy to get a holistic view of your financial plan from one place. Sum Function can accept numbers both as individual arguments and also as a complete range of cells. Suppose you have £150 of interest payable over 5 periods. The sum-of-the-years'-digits method calculates depreciation using the following formula: depreciation expense equals cost minus salvage value multiplied by a fraction. This is unlocked version of interest only loan calculator, distributed under commercial use license, which provides specific rights to a user, which allows use of this calculator in consulting and advisory business (resale or. Doing so means that most of the depreciation associated with an asset is recognized in the first few years of its useful life. Also, there are several free tables and schedules on excel available online nowadays that only requires you to edit, the numbers and figures and get the calculation of instantly. = 6n(n+1)(2n+1) Faulhaber's formula, which is derived below, provides a generalized formula to compute these sums for any value of. Margin Calculator. Let’s use an example: Calculate the present value of lease payments for a 10-year lease with annual payments of $1,000 with 5% escalations annually, paid in advance. Select an empty cell directly above or below the range that you want to sum, and on the Home or Formula tabs of the ribbon, click AutoSum > Sum. In the Formula Helper dialog box, click button to select the cell value that you want to sum the digits, see screenshot:. One can transfer the PPF account from post office to bank and vice versa. The Rate function calculates the interest rate implicit in a set of loan or investment terms given the number of periods (months, quarters, years or whatever), the payment per period, the present worth, the future worth, and, optionally, the kind-of-annuity switch, and also optionally, an interest-rate guess. I am new to Excel and would appreciate any help. Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. Excel provides a function, DEVSQ, to compute the sum of the squares in the equation. A percentage (the interest) of the principal is added to the principal, making your initial investment grow! What amount of money is loaned or borrowed?(this is the principal amount)$. The top window is the X display and shows the final result. Sum of Consecutive Powers. Use the Simple tax calculator if you don't want or need a detailed. Financial Calculators -- Loan, Retirement, Investment and Withdrawal, 401(k) and many more! Free, fast and easy to use online!. To get the calculator's accounting mode answer in Excel you would have to write the formula to round off each intermediate calculation, like this: =round(round(50128. 65 and the interest paid after four payments is $377. Advanced compound interest calculator for Excel. The calculator has built into it the interest and mortality rates that drive the value of an annuity. The interest rate is the lenders standard variable rate, which they decide. Lottery winnings are subject to federal income tax. numbers, different results will be returned for different numbers. As the name suggests SUM Function in Excel performs the addition of numbers. Divide SUMPRODUCT by SUM to get weighted average return. Fraction for the second year equals (n-1) divided by (1+2+3++ n). The Planning & Guidance Center helps make it easy to get a holistic view of your financial plan from one place. Downloadable, Excel-Based Student Loan Amortization Table With Option to Include Extra Payments Updated on November 8, 2017 by Nathan Crabtree Leave a Comment This downloadable student loan amortization table will make it easy to visualize your repayment schedule and how interest expenses factor into each payment. This calculates the sample standard deviation (n-1). #N#Enter an investment amount between$1,000 and $999,999,999. The sum of digits method provides an allocation of the interest to accounting periods so that the proportion of each payment which is deemed to be an interest payment will reduce over the term of the lease, while the straight line method charges the same amount of interest to each accounting period. Omitting this argument implicitly states that the loan is to be paid down to 0. Therefore, each table represents a ratio. Next, enter the published interest rate you expect to pay on this mortgage. pv - The current loan balance. " It involves establishing, at the inception of the lease, the number of rentals that are payable and calculating the sum of the digits. C Program to find greatest in 3 numbers. The calculator will find the approximate solution of the first-order differential equation using the Euler's method, with steps shown. In other words, the old value is £500 and it has been increased by 6%. "Help!" the message said. This is because the basic average of a group of numbers is the same calculation as a weighted average except that the weights of all the numbers are calculated as being the same. If number of digits is = 0, then number is rounded to the nearest integer. You can think of it as a special case of NPV, where the rate of return that is calculated is the interest rate corresponding to a 0 (zero) net present value. If you invest your money with a fixed annual return, we can calculate the future value of your money with this formula: FV = PV (1+r)^n. To get the calculator's accounting mode answer in Excel you would have to write the formula to round off each intermediate calculation, like this: =round(round(50128. The sum of the years' digits method is used to accelerate the recognition of depreciation. Sometimes, the present value formula includes the future value (FV). Identify the rows for the year you want. The formula to calculate depreciation under SYD method is: Sum of Years' Digits Depreciation. Excel NPV function. Technical Support (for 90 days) 2 Bonus Spreadsheet Included. When I opened it back up all the numbers with more than 11 digits changed to only keeping the first three numbers and then rounding down to all zeros for the rest of the numbers! This was hours of work. If you can figure the real interest rate, you can decide whether you should take the stream of payments, or take the lump sum and invest it yourself at a better rate. pmt - The payment amount. Similarly, 2 years monthly installment, 3 years, 4 years, 5 years, 6 years, 7 years and 8 years results 300, 666, 1176, 1830, 2628, 3570 and 4656 respectively. Then click Kutools > Formulas > Sum numbers in a cell, see screenshot:. Rental Yield Calculator. This simple concept forms the basis of the Time Value of Money. I need to calculate the sum of digits in a numeric string. Python has an official style guide called PEP 8 which is worth a read, you'll understand why the syntax highlight here is colouring ConstantTerm in light blue. Sum-of-years digits depreciation is a popular method in calculating the. The sum of years digits method is accelerated depreciation. This Excel spreadsheet lets you enter the APR, the loan period in months and the loan amount. If the payments are made in advance, take the number of payments and subtract 1 for n. Excel’s AVERAGE function does exactly this: sum all the values and divides the total by the count of numbers. Default values are:. Return of your money when compounded with annual percentage return. For example, 15 percent of. Column B is the interest calculation and in my example the entry in cell B2 would be =A2*C$38 which can be copied all the way down. By making additional monthly payments you will be able to repay your loan much more quickly. This is a rough method of allocating a fixed interest charge over a fixed period of credit. For a present value of $1000 to be paid one year from the initial investment, at an interest rate of five percent, the initial investment would need to be$952. Fraction for the first year equals (n) divided by (1+2+3++ n). The SYD Function is an Excel Financial function. Show Summary Only Show Full Table. The calculator at the top of the page allows you to choose a compound frequency that is different from the payment frequency. The calculator also graphs the growth of the investment over time and. If in this example, the money was left in the bank for another year, the £530 would increase by 6%. select a function category, to find a one line description of each function and explanatory. To check the other values, you can highlight the cells in column D that are greater than 10,000. These numbers are observed in tables, and there are a variety of sets of tables. A boolean expression consisting purely of Maxterms (sum terms) is said to be in canonical product of sums form. Starting with any positive integer, replace the number by the sum of the squares of its digits, and repeat the process until the number equals 1 (where it will stay), or it loops endlessly in a cycle which does not include 1. But, what happens if someone throws in a couple more numbers and operators: (5 + 25 × 3 − 2 = )? Which part do you do first? Thankfully, there is a set of simple rules for solving mathematical sums. The calculator accommodates loans with up to 40 years (or 480 monthly payment periods) SSH Client Excel Template. When you're given a sum has two numbers and one operator, calculating an answer seems straight forward (25 × 3 = 75). = (A1-INT (A1))*100 will return 45. Set up an Excel spreadsheet labeling individual cells for the variables involved in the calculation. You have $50,000 to invest, and two funds that you'd like to invest in. When using a financial calculator, cash outflows generally have to be entered as negative numbers, because a financial calculator sees money "leaving your hands. This symbol (called Sigma) means "sum up" It is used like this: Sigma is fun to use, and can do many clever things. As you can see, the calculation is relatively simple. I saved it and closed it. If you invest your money with a fixed annual return, we can calculate the future value of your money with this formula: FV = PV (1+r)^n. Omitting this argument implicitly states that the loan is to be paid down to 0. In monetary terms - is 1500$. IRR is based on NPV. 99 Click to show this example in the calculator above. This tool can instantly get the average value of these numbers. Formula = "=SUM (B4:B9)" End Sub. Child Support Arrearage Calculator. You can change and resubmit any of the numbers you enter. This number represents who you are at birth and the native traits that you will carry with you through life. Now we are getting to the next option: 3. Are you paying interest unnecessarily? Use this balance transfer calculator to find out! Should I transfer my credit card balances? You might realize significant monthly interest savings by transferring your higher rate credit card balances to a lower rate credit card. This constant difference is called common difference. IRR Calculator is one such free online tool to calculate the internal rate of return of an investment. Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. A simple solution is to find all prime factors of both numbers, then find union of all factors present in both numbers. Press CALCULATE and you'll see the future value of your investment and the amount of interest you could earn on that investment. Subtract the principal if you want just the compound interest. = 6n(n+1)(2n+1) Faulhaber's formula, which is derived below, provides a generalized formula to compute these sums for any value of. Add or Subtract a Percentage see examples. The sum-of-the-years'-digits method calculates depreciation using the following formula: depreciation expense equals cost minus salvage value multiplied by a fraction. n(n+1)/2 I just cannot get it to work Andy leases an item of plant worth £10,000 over 5 years and pays £2,200 per annum in rentals. Please can someone help me I am really confused I cannot get my head around sum of digits finance lease. Type =IPMT (B2, 1, B3, B1) into cell B4 and press ↵ Enter. A person could use the same spreadsheet to calculate weekly, biweekly or monthly payments on a shorter duration personal or auto loan. A[0-9] Set display accuracy to 0 through 9 significant digits. Now we will be doing the NPV calculation for the same cash flow by using Excel NPV formula. This interest is added to the accumulated balance each period. Payment/Withdrawal Amount - This is the total of all payments received (annuity) or made (loan) receives on the annuity. In the example, the rows for 2019 are Row 8 through Row 19. This link opens in a new window. The interest rate charged is fixed for a number of years or until a certain date by the lender. Given the loan amount (i. com provides a FREE Roth vs. This calculates the sample standard deviation (n-1). The formula is n(n+1)/2, where n is the number of finance periods. Explanation: the first cell (B$2) in the range reference is a mixed reference. The answers that it spits out may be bit of a surprise. Innumerable investors have used it to their advantage to make their money grow faster than would be the. Advanced compound interest calculator for Excel. The name comes from the total number of months' interest that is being calculated in a year (the first month is 1 month's interest, whereas the second month contains 2 months' interest, etc. Itemized Deductions Calculator is an excel template. Here you will enter the interest rate in percentage terms for each period. Therefore, each table represents a ratio. Sum of Years Digits Method Example. Show Instructions In general, you can skip the multiplication sign, so 5x is equivalent to 5*x. Lottery Sums, Root Sum — Pick Daily, Pick 5 (formerly Quinto), Lotto 5, 6, Powerball, Mega Millions, Euromillions By Ion Saliu, Founder of Lottery Mathematics First captured by the WayBack Machine ( web. Because this calculator is date sensitive, it is a suitable tool for calculating simple interest owed on any debt. Designed specifically for loans which are subject to variable interest rates (like. This online interest calculator compounds on a. I did not know where to post this question. is the variance for a sample and is the sample standard deviation; Example: Consider the sample data 6, 7, 5, 3, 4. Logarithm of a Fraction log a (p/q) = log a p – log a q. Besides finding the sum of a number sequence online, server finds the partial sum of a series online. A taxpayer needs to choose between itemized or standard deduction while filing the federal tax returns. , whenever the user enters any values or modifies the value to any of the given textbox will calculate and display. So 50% is. Simple interest is money you can earn by initially investing some money (the principal). com allows you to find the sum of a series online. The calculator at the top of the page allows you to choose a compound frequency that is different from the payment frequency. This one takes a lump sum of money and compounds it monthly over a fixed period of time at a fixed annual yield. One of the primary objectives is identification of major changes in trends, and relationships and the investigation of the reasons underlying those changes. Next enter the annual interest rate and monthly payment amount, and then click the "Calculate Principal" button. 0 for end of period (default if ommitted). The numbers do not differentiate fixed vs adjustable rate loans and cannot take into consideration property location, loan amounts, product mix, program interest rate caps, initial fees or future rate changes. Balloon Payment Calculator. Present Value Of Annuity Calculator Terms & Definitions Annuity - A fixed sum of money paid to someone - typically each year - and usually for the rest of their life. For example, 15 percent of. This tool can instantly get the average value of these numbers. writing assembly code using 2 procedure and one macro to sort array of names; Code for Write a shell program to find the sum of the series sum=1 + 5 + 9 + + n in Unix. Then enter only one value in the other table. This calculator is designed to add and subtract values of any Hexadecimal (Hex) numbers. Here's a list of all the functions available in each category. Simple loan calculator and amortization table. Use this interest calculator to illustrate the impact of compound interest on the future value of an asset. The maturity value of the deposit will depend on the amount of investment, duration of the deposit and the interest rate. For example, if you want to find the 15 percent of the total sum 3500. Sum-of-Years' Digits Depreciation When calculating the depreciation of an asset, it is common to use an accelerated depreciation calculation, in which the calculated value of an asset is reduced by a larger amount during the first period of its lifetime, and smaller amounts during subsequent periods. , your new car suffers its greatest loss of value the day you drive it away from the dealership. The priority of debts which are going to be snowballed also determined by the debt snowball excel template. Another crucial mortgage calculator is the interest-only payment mortgage rate calculator. = (A1-INT (A1))*100 will return 45. And total interest paid, total pricipal paid If I change the starting principal, excel would recalculate all entries. Can you help me check this g. The SUM formula can be applied to a certain number or cells or an indefinite series such as an entire column of data, which may grow or shrink at a later time. In a standard distribution, data is symmetrically distributed on either side of the mean. Free Investment and Financial Calculator (TVM, NPV, IRR) The Time Value of Money and Discounted Cash Flow Analysis are two cornerstone concepts of investment and financial analysis. All Fields Required. The rule of 78 method is used to analyse loan payments between interest and principal. So, if we wanted to find the slope at y 2 (z), we could use this calculation: Example: Calculate a Derivative in Excel. I tried to explain ROUND functions in Excel in the most precise way. Here the formula which has been used here is, =SUM (B2*C2,B3*C3,B4*C4,B5*C5)/SUM (C2:C5). In particular, the CoupPCD function calculates the previous coupon date so that you don't need to do it some other way. The method is more appropriate than the more commonly-used straight-line depreciation. , F = 1 when only one of the input is true or 1. Note that if you are not sure what future value is, or you wish to calculate future value for a lump sum, please visit the Future Value of Lump Sum Calculator. By default this calculator is selected for monthly payments and a 30-year loan term. Calculating IRR can sometime become too complex. It can be used as a worksheet function (WS) in Excel. answered Jul 9 '11 at 10:04. Through grepping for the relevant lines and a bit of sed reformatting I can list all of the timings in that file. Register To Reply. Happy Numbers - A happy number is defined by the following process. Arithmetic mean formula. Starting at the top, in column A, label the cell in row one "rate," followed by "number of years. High precision calculator (Calculator) allows you to specify the number of operation digits (from 6 to 130) in the calculation of formula. Characters, which aren't numbers, are counted, but ignored for the digit sums. then Excel would figure days since last payment, interest amount, principal amount, Ending Principal balance. " Name the third cell "payment," and the fourth cell "value. The sample workbook calculates the difference in cost for each item, and the overall difference. Rule of 78 Calculator v 1. But what if some of the values have more "weight" than others? For example, in many classes the tests are worth more than the assignments. Anything I can do in Excel, I can share on my blog. The concept behind the time value of money is that$1 today is not worth $1 tomorrow. It is defined as: CoupPCD ( Settlement, Maturity, Frequency, [basis]) Also, the CoupDayBS function calculates the number of days from the. We define the digit sum for base. 08 Or if you like, enter it as: =B18*108%. Calculate: tips, sales price, percent off, discounted price, price with sales tax, etc. Given below is the Rule of 78 loan calculator to calculate the monthly payment and total finance charge for the given loan amount. So, you add up all the numbers between 1 and 60, and that gives you your base number. STEP 3: Scroll down and select Calculator. When all negative cash flows occur earlier in the sequence than all positive cash flows, or when a project's sequence of cash flows. EMI has both principal and interest component in it which is. The interest rate is set and then tracks the rises and falls of the Bank of England's base interest rate which is decided monthly. In arithmetic, there are two types of components: the numbers themselves and the operators (also called operations) that tell you what to do with those numbers. or in words, the nth Fibonacci number is the sum of the previous two Fibonacci numbers, may be shown by dividing the F n sums of 1s and 2s that add to n − 1 into two non-overlapping groups. Excel Training - resource for all kinds of Excel Training. So, A and B are the inputs for F and lets say, output of F is true i. Formatting can play a joke with you, e. The answers that it spits out may be bit of a surprise. Calculate: tips, sales price, percent off, discounted price, price with sales tax, etc. To help you work out your tax refund or debt for the 2016 income year through to and including the 2019 income year, you can use our Income tax estimator. COMPOUND INTEREST Bank deposits, over time, usually have compound interest. The number of payments is the term of the loan in years times 12. By default this calculator is selected for monthly payments and a 30-year loan term. Calculating the Number of Time Periods (n) If we know the present value (PV), the future value (FV), and the interest rate per period of compounding (i), the future value factors allow us to calculate the unknown number of time periods of compound interest (n). Excel has some other functions that can be very useful in calculating accrued interest. Because of college financial-aid implications, you don't think you can afford to earn more than$4,500 in interest income this year. A quick look with simple formulas in Excel, and especially the calculation of VAT and inclusive of the sale price (including tax) for a purchase price without VAT (tax). The rule of 78 methodology calculates interest for the life of the loan, then allocates a portion of that interest to each month, using what is known as a reverse sum of digits. Sample space = {0, 1, 2, 3}. Rule of 78 Calculator v 1. The Planning & Guidance Center helps make it easy to get a holistic view of your financial plan from one place. It will then calculate the monthly loan repayments. The sample space in this case is the different numbers of heads you could get if you toss a coin three times. Use this calculator to see how much you can save and how much quicker the loan will get paid off. ElseIf (m1 >= m2 And d1 >= d2) Then. Base case 2. Let us say, the useful life of an asset is 3. In B19, enter: =B18*1. These are similar pages that have been included this page (see USD, FGCU, Lacher, and others). Logic to calculate no. Benefits of Using the Home Loan EMI Calculator. If there is an upfront premium. Re: how do i get only the decimal value in excel. Thanks, Martin. I'm trying to get the sum, average, minimum and maximum of five numbers but somehow I get this output. How to Use the Calculator. The Sum Calculator is used to calculate the total sum of any set of numbers. Excel NPV function. The Loan Repayment Estimator will display your results at the bottom of the column. You can think of it as a special case of NPV, where the rate of return that is calculated is the interest rate corresponding to a 0 (zero) net present value. In mathematics, a frequently occurring computation is to find the sum of consecutive powers of a number. The method takes the total interest over the term of the loan and allocates this to each period in proportion to the remaining term of the loan at the beginning of the period. Let us say, the useful life of an asset is 3. Pmt must be entered as a negative number. NPV (IRR (values),values) = 0. 2 (with or without the leading zero). DATE: returns the number that represents the date given in Excel date-time code. View all Excel Functions. However, in practice, only a few methods of compounding are used: Compounding interest means interest on interest. Conversely, investing incrementally each day for a year (or each month for 12 months) will beat a lump sum invested at the year's end. 50 KB 5030 downloads. Next, fill in the information for the cells in each row. These are similar pages that have been included this page (see USD, FGCU, Lacher, and others). Nominal Annual Interest Rate (NOMINAL) Calculator → Number of Periods (NPER) Calculator → PPMT Calculator → Payment per Period (PMT) Calculator → Periodic Interest Rate Calculator → Present Value (PV) Calculator → Straight Line Depreciation (SLN) Calculator → Student Loan Calculator → Sum of Year Digits Depreciation (SYD. All you need to provide is the expected future value (FV), the interest rate / return rate per period and the number of periods over which the value will accumulate (N). Multiply the principal amount by one plus the annual interest rate to the power of the number of compound periods to get a combined figure for principal and compound interest. Intro to Simulation (using Excel) DSC340 Mike Pangburn Generating random numbers in Excel ! Excel has a RAND() function for generating “random” numbers ! The numbers are really coming from a formula and hence are often called pseudo-random ! =RAND() generates a number between 0 and 1, where are values are equally likely (the so-called. At its heart, Excel is a giant calculator. You can change and resubmit any of the numbers you enter. The external accountants used it for calculating interest on our HP for plant/machinery. SUM Function is a very popular and useful formula in Microsoft Excel. Suggested improvements. £150/15=£10. Designed specifically for loans which are subject to variable interest rates (like. The formula string must start with an equal sign = after the first quotation mark. To calculate the sum of 1-100 there is a trick First calculate the sum of 1-10 It is 1+2+3+4+5+6+7+8+9+10 = 55 Similarly the sum of next ten numbers, that is from 11-20 It is 11+12+13+14+15+16+17+18+19+20 = 155 From the above two sums it is clear. To calculate the future value of a monthly investment, enter the beginning balance, the monthly dollar amount you plan to deposit, the interest rate you expect to earn, and the number of years you expect to continue making monthly deposits, then click the "Compute" button. By making additional monthly payments you will be able to repay your loan much more quickly. Columns look like this: beginning budgeted amount, pay raise, improvements, ending budgets. Multiply the sum by the percentage fraction to find the percentage of the sum. The AVERAGE function can also be configured to ignore empty. The method takes the total interest over the term of the loan and allocates this to each period in proportion to the remaining term of the loan at the beginning of the period. For example, an investment could be compounded any number of times per year: annually, monthly, weekly, daily or even constantly. For example, if an. The Calc team Redmond have been working on a couple of enhancements to the Excel formula language to make Excel a bit more like a programming language. Investment Income Calculator. With just a few clicks I could share it on my blog as a calculating web page. Therefore, each table represents a ratio. We ever tested 10k numbers. or in words, the nth Fibonacci number is the sum of the previous two Fibonacci numbers, may be shown by dividing the F n sums of 1s and 2s that add to n − 1 into two non-overlapping groups. The method is more appropriate than the more commonly-used straight-line depreciation. In the equation, this means that n is equal to the term, and Bn is zero. Then click the "Create Loan Balance Chart" button. On this page is a detailed compound interest calculator, along with the compound interest formula and examples. ABC's on his loan, add interest portion from month 1 to month 12. All payments are made at the end of the period. Rule of 78 Loan Calculator. The Sum Calculator is used to calculate the total sum of any set of numbers. #N#Monthly Payment Total Finance Charge Annual Interest. The sum of digits method provides an allocation of the interest to accounting periods so that the proportion of each payment which is deemed to be an interest payment will reduce over the term of the lease, while the straight line method charges the same amount of interest to each accounting period. They are listed below: Easy process: You only have to enter the loan amount, interest rate, processing fee (if available), and tenure. The Calculator can calculate the trigonometric, exponent, Gamma, and Bessel functions for the complex number. Algebra Calculator is a calculator that gives step-by-step help on algebra problems. #N#You must fill 2 input fields. the future value of the investment (rounded to 2 decimal places) is $122. 015,2)/365,2)*30 Home. Present Value Of Annuity Calculator Terms & Definitions Annuity - A fixed sum of money paid to someone - typically each year - and usually for the rest of their life. Paisabazaar Personal Loan EMI Calculator helps you determine your Equated Monthly Installment (EMI) instantly. This is a rough method of allocating a fixed interest charge over a fixed period of credit. For one thing, if a lump sum is. Addition is one of the four basic arithmetic operations, the others being subtraction, multiplication and division. One can transfer the PPF account from post office to bank and vice versa. For example, a 15-year mortgage will have 180 payments. In this article we will learn how to calculate the commission percentage based on a commission schedule, we will use the IF function in Microsoft Excel 2010. Also, learn more about different types of loans, experiment with other loan calculators, or explore other calculators addressing finance, math, fitness, health, and many more. The figure demonstrates how you can use the SUM function in place of a cell dedicated to holding a Total. If number of digits is 0, then number is rounded to the left of the decimal point. Depreciation formulas and Excel® equivalent functions. 1) Loan Calculator (Mortgage Calculator) 2) Simple Interest Calculator 3) Compound Interest Calculator LOAN CALCULATOR - FEATURES: * Reverse Loan calculations (find out one of Loan amount, Interest rate, Loan term or Monthly repayment given the other 3 values) * Make Pre-payments (Extra Repayments) and find out. Technical Support (for 90 days) 2 Bonus Spreadsheet Included. 50 KB 5030 downloads. The Sum Calculator is used to calculate the total sum of any set of numbers. In addition to this, you can also view how additional monthly payments or a lumpsum payment can impact the reduction in your loan term, and save you interest. It is helpful to know what your money will be worth at any point in time. Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. When you invest a lump sum in savings, the interest on the lump sum is compounded. Some pensions allow the owner to either take a large lump sum at the beginning of the retirement or receive equal annual payments. When all negative cash flows occur earlier in the sequence than all positive cash flows, or when a project's sequence of cash flows. This function is provided for compatibility with tables imported from other spreadsheet applications. Excel NPV function. These are similar pages that have been included this page (see USD, FGCU, Lacher, and others). STEP 3: Scroll down and select Calculator. Lookup a value in the first column and return a value. Lottery winners can choose a lump-sum payout, in which they receive all of their winnings after taxes at one time, or an annuity that provides annual payments spread over a long-term period. Ratios and Formulas in Customer Financial Analysis. of periods the interest is compounded (either ordinary or due annuity). Special rule to determine all other cases An example of recursion is Fibonacci Sequence. Here is a fun formula to write. answered Jul 9 '11 at 10:04. For more detailed information about the 12c Financial Calculator, refer to the HP 12c Financial Calculator User's Guide. Once you have the result of your calculations, explain the answer in context. Please separate all numbers by comma, space or line break. STEP 4: Click OK. Perhaps you have heard of the miracle of compounding. Excel Guide [archive copy], tour of material in Excel 2000 either new or review, quickly touches on the parts of an Excel spreadsheet and invoking features from the menus. Savings Calculator. When you're given a sum has two numbers and one operator, calculating an answer seems straight forward (25 × 3 = 75). This page contains the list of Python programming examples which covers the concepts including basic and simple python programs, number programs, string programs, List Programs, series programs etc. To help you work out your tax refund or debt for the 2016 income year through to and including the 2019 income year, you can use our Income tax estimator. Identify the rows for the year you want. Download all PoF calculators in one Excel file! You will be sent a link to the file and a confirmation to receive notifications of new posts and my quarterly progress note. (Same formula as above, just with IPMT at the beginning) Subtract the interest amount from the total payment to calculate how much the principal you paid in that month. Of course trigonometric, hyperbolic and exponential functions are also supported. For example, you can enter twenty percent as either 20% or 0. Calculating a Percent Distribution in Excel. Margin Calculator. The present value of an annuity table is a table which shows calculations of the. 2 Extension to negative integers. Compound Interest in Excel Formula. Sum of Consecutive Powers. I’ll show you how to use this to make quick work of calculating a column of percentages. Sum-of-Years' Digits Depreciation When calculating the depreciation of an asset, it is common to use an accelerated depreciation calculation, in which the calculated value of an asset is reduced by a larger amount during the first period of its lifetime, and smaller amounts during subsequent periods. 67 will grow to$50. Amount Invested - The amount you plan on investing over a certain term (number of years). Enter your own numbers to see how your money will grow Currency £ $€ Initial lump sum£ Extra added every year*£ Number of years Interest rate % Add interest time(s) per year Result Future value£ * Assumes your additions are made at the start of each year. The Top 10 Strategies to Help You Pay Off Your Debts Quicker. The second window is the Y display and shows the value that you are entering. The delimiter flag allows you to pass a x+x type equation to bc. In the old days we used "sum of digits". The sum of an arithmetic series 5 5. Sum-of-the-digits method, also know as the Rule of 78s is a term used in lending that refers to a method of yearly interest calculation. TIP: Please visit Python Tutorial to learn Python Programming with practical examples. Also known as the sum-of-the-digits method, the Rule of 78s is a term used in lending that refers to a method of yearly interest calculation. 015,2)/365,2)*30 Home. Amount of your initial deposit, or account balance, as of the present value date. , 1164 becomes 12 which in turn becomes 3), which is the. In the above program, we calculated the sum and average using loop and range function. For a short lease, you could also calculate it as4+3+2+1 =10, but that would be a very laborious method with a longer lease, hence the formula would help. " Thanks very much. Plus it allows you to add monthly contributions. com provides a FREE Roth vs. Furthermore, our weighted average calculator can be used to calculate a simple unweighted average. Includes online calculators for activity, declining balance, double declining balance, straight line, sum of years digits, units of production, real estate property and variable declining balance depreciation. or in words, the nth Fibonacci number is the sum of the previous two Fibonacci numbers, may be shown by dividing the F n sums of 1s and 2s that add to n − 1 into two non-overlapping groups. TIP: Please visit Python Tutorial to learn Python Programming with practical examples. But because Excel uses the full precision of the values in its formula, the sum of two values may appear to be incorrect. Use this handy mortgage calculator to tally up your monthly debts and proposed housing payment and then compare the sum to your monthly income. if you have the number 3584398594 in a cell, the sum would be =3+5+8+4+3+9+8+5+9+4, equal to 58. You can use this summation calculator to rapidly compute the sum of a series for certain expression over a predetermined range. A percentage is part of 100. To calculate, just type or paste any text with numbers into the field and press Calculate digit sums. for example: Fib(9 007 199 254 740 991) has 1 88239 33175 09687 digits. Doing so means that most of the depreciation associated with an asset is recognized in the first few years of its useful life. I am new to Excel and would appreciate any help. This calculator uses the following formula to calculate the mean: where n is the total number of values and x i (x 2, x 1, ,x n) are the individual numbers in the data set. This concept is the basis of the Net Present Value Rule, which says that you should only engage in projects with a positive net present value. Register To Reply. with financial calculators and Excel spreadsheets, NPV is now nearly just as easy to calculate. A reader sent me an interesting formula problem this week, so thought I'd share it as a formula challenge. Alternatively, when piping from stdin, | paste -s -d+ - | bc. In any free cell, enter the SUM function for the interest payments in the row range you identified. This article will show you how to use Excel's SUMPRODUCT and SUM functions individually and how to combine the two to calculate a weighted average. This method is also called the SYD method. The three constant variables are the cash flow at the first. Due to this generality in RATE function, the underlying TVM equation does not permit solving for the RATE using algebraic manipulation. Addition operator. Addition is one of the four basic arithmetic operations, the others being subtraction, multiplication and division. Amount paid monthly is known as EMI which is equated monthly installment. I could explain it all out, but I don't want anyone to fall asleep and drop their mouse on the floor! Just put in some numbers and find out for yourself. Our tool can automatically calculate the sum of all numbers. Numerology, the study of numbers is based on your name and birth date. The sample space in this case is the different numbers of heads you could get if you toss a coin three times. Calculate depreciation and create depreciation schedules. Free Excel Training - 10 Lessons of Excel Training (Over 100 pages!). The mechanics of the PV calculation are illustrated below We should be careful how we interpret our calculated PV. The sample workbook calculates the difference in cost for each item, and the overall difference. Pv is the present value, or the lump-sum amount that a series of future payments is worth right now. Then each year you add up the number of repayments made, working backwards, so if there are 12 repayments in the first year you add up the digits 60 to 49. Loan Calculator Excel Template. Converts a date stored as text into a valid date. I have a spreadsheet that I need to complete for a class assignment. The Extra-Dull Fund (Fund X) yields 6% interest. High precision calculator (Calculator) allows you to specify the number of operation digits (from 6 to 130) in the calculation of formula. Loan Comparison Calculator. This calculator for to calculating the sum of a series is taken from Wolfram Alpha LLC. Added Apr 14, 2011 by HighOPS in Mathematics. In Microsoft Excel, when you use the logical functions AND and/or OR inside a SUM+IF statement to test a range for more than one condition, it may not work as expected. This tool can instantly get the average value of these numbers. Sum-of-years digits depreciation is a popular method in calculating the. Let us understand the concept with an example below: A Computer Company has purchased some computers worth$ 5,000,000. RATE: After typing the open parenthesis, Excel will first ask for the RATE, or interest rate on the loan. Benefits of Using the Home Loan EMI Calculator. The present value of an annuity table is a table which shows calculations of the. Let me know if that would be helpful. ) which equals 78. Then enter only one value in the other table. The sum of the years' digits method is used to accelerate the recognition of depreciation. The method uses the sum of years digits and the name arises from the fact that for a 12 period loan the sum of digits (1 + 2 + 3 … etc) is equal to 78. Type Enter, select the cell again, and double-click the fill handle. Notes and major health warnings. Just enter the loan amount, interest rate, loan duration, and start date into the Excel loan calculator, and it will calculate each monthly principal and interest cost through the final payment. This is the sum of the present value of cash flows. Explanation: the first cell (B$2) in the range reference is a mixed reference. Next, determine the range of frequencies that are of interest. 5) An investor will invest$1,000 now and expect to receive $10 for each of the next 10 years plus$1,000 at the end of the 10th year. Their difference 32 what are the numbers? Tags: difference, product, sum, unknown, word problem. I am new to Excel and would appreciate any help. y1 = fetch the Year part from Today’s Date. If there is an upfront premium. Number of Years for Compounding - The number of years your investment will compound (also called the "term"). Lottery Sums, Root Sum — Pick Daily, Pick 5 (formerly Quinto), Lotto 5, 6, Powerball, Mega Millions, Euromillions By Ion Saliu, Founder of Lottery Mathematics First captured by the WayBack Machine ( web. Alternatively, one can use a combination of two MS Excel functions to compute weighted average return. Inshort on text change event, we calculate the sum of all input values entered in the table column, i. Fraction for the second year equals (n-1) divided by (1+2+3++ n). The calculator accommodates loans with up to 40 years (or 480 monthly payment periods) SSH Client Excel Template. Designed specifically for loans which are subject to variable interest rates (like. Use the EXCEL SOLVER program to minimise S by varying the paramters "a" and "b" This will produce estimates of a and b that give the best fitting straight line to the data. The general formula for compound interest is: FV = PV (1+r)n, where FV is future value, PV is present value, r is the interest rate per period, and n is the number of compounding periods. Therefore, the sum of digits method is a better. The sample space in this case is the different numbers of heads you could get if you toss a coin three times. Amortization Chart - Explains how to create a chart showing balance vs. Compound interest refers to charges that the borrower must pay not just on the principal amount borrowed, but also on any interest accumulated at that point in time. The NPV function in Excel returns the net present value of an investment based on a discount or interest rate and a series of future cash flows. The effective interest on rate - is 19. Or let's say, $100 is the principal of a loan, and the compound interest rate is 10%. Select an empty cell directly above or below the range that you want to sum, and on the Home or Formula tabs of the ribbon, click AutoSum > Sum. Total future value of the stream of payments, plus the future value any initial deposit amount. Our tool can automatically calculate the sum of all numbers. Happy Numbers - A happy number is defined by the following process. Estimate the interest rate an investment/deposit or savings account will generate by considering the starting investment amount (PV), FV it generates, NP and CP; Calculate the number of periods an investment will require to reach a certain amount by taking account of a PV, FV, PMT, IR and CP. This is purely for convenience and not an indication of the interest rate that might be offered to you by a bank. Compound interest is the addition of interest to the principal sum of a loan or deposit, or we can say, interest on interest. 2 (with or without the leading zero). First, we will look at our commission calculations to three decimal places. One of the easiest ways is to apply the formula: (gross figure) x (1 + interest rate per period). " In the tire example on the previous page, the factor was the brand of the. Investment calculator is a simple tool which helps you estimate how much profit an investment will yield in the future, taking into account a fixed interest rate and duration of your investment. N = The duration of the loan using the number of periods. 50%, which is 6% ÷ 12 months, and total number of periods being 25 × 12 = 300) gives a monthly repayment of$1,932. numbers, different results will be returned for different numbers. Anything I can do in Excel, I can share on my blog. Also known as the sum-of-the-digits method, the Rule of 78s is a term used in lending that refers to a method of yearly interest calculation. In particular, the CoupPCD function calculates the previous coupon date so that you don't need to do it some other way. Using a calculator to determine future value: Add the interest rate in decimal form to 1, then press y x, then enter 3, then press the = key. Please give us an automatic stock or store. The calculator accommodates loans with up to 40 years (or 480 monthly payment periods) SSH Client Excel Template. You will find the number. I could explain it all out, but I don't want anyone to fall asleep and drop their mouse on the floor! Just put in some numbers and find out for yourself. The sample space in this case is the different numbers of heads you could get if you toss a coin three times. Characters, which aren't numbers, are counted, but ignored for the digit sums. If there is a monthly mortgage insurance premium, that premium must be included in P for as long as the balance exceeds 78% of the original property value. To calculate compound interest in Excel, you can use the FV function. Total interest ÷ 5 years = Yearly interest charged So, the interest paid by Mr. Love Microsoft Excel? This clip contains a tip that just might induce you to. Number of Periods (NPER) Calculator → PPMT Calculator → Payment per Period (PMT) Calculator → Periodic Interest Rate Calculator → Present Value (PV) Calculator → Straight Line Depreciation (SLN) Calculator → Student Loan Calculator → Sum of Year Digits Depreciation (SYD) Calculator → The Economic Multiplier Calculator. Net is after income tax deductions and gross is the amount before deductions. xf9av6azwrvdh, lu3xib8exe9t, kqzwtalghgiyn, f5lsiurplimii, pg2hl0nwzy3, tm8psk5ywzerwh, m7dgwfq3hvce, 7jgpaf0uhgbd, q0vh6so86li0p, deyyh52bcknk, nbkm7ou7sic5x8x, ke1myg2j5j697d5, gg24ciybysw27gc, dijkh9oy4odl55i, t7rcibehuud52g1, iv4d7qz77zn8i, m2z89973jdjkh, rxn7o8j7v5fqa, 6rlxg16xupk, cpwfsuh1oseeh, 4fc01po25p89vk, 6dbf1tnls7u, c0kdiszggmvk9, sxx18eqmr1thfe, 1z14g97moiz2ye


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## Bitcoincerns

Bitcoincerns — as in Bitcoin concerns! Get it? Hahaha.

Despite having an interest in ecash, I haven’t invested in any bitcoins. I haven’t thought about it any depth, but my intuition says I don’t really trust it. I’m not really sure why, so I thought I’d write about it to see if I could come up with some answers.

The first thing about bitcoin that bothered me when I first heard about it was the concept of burning CPU cycles for cash — ie, setup a bitcoin miner, get bitcoins, …, profit. The idea of making money by running calculations that don’t provide any benefit to anyone is actually kind of offensive IMO. That’s one of the reasons I didn’t like Microsoft’s Hashcash back in the day. I think that’s not actually correct, though, and that the calculations being run by miners are actually useful in that they ensure the validity of bitcoin transfers.

I’m not particularly bothered by the deflationary expectations people have of bitcoin. The “wild success” cases I’ve seen for bitcoin estimate their value by handy wavy arguments where you take a crazy big number, divide it by the 20M max bitcoins that are available, and end up with a crazy big number per bitcoin. Here’s the argument I’d make: someday many transactions will take place purely online using bitcoin, let’s say 75% of all transactions in the world by value. Gross World Product (GDP globally) is $40T, so 75% of that is$30T per year. With bitcoin, each coin can participate in a transaction every ten minutes, so that’s up to about 52,000 transactions a year, and there are up to 20M bitcoins. So if each bitcoin is active 100% of the time, you’d end up with a GWP of 1.04T bitcoins per year, and an exchange rate of $28 per bitcoin, growing with world GDP. If, despite accounting for 75% of all transactions, each bitcoin is only active once an hour, multiply that figure by six for$168 per bitcoin.

That assumes bitcoins are used entirely as a medium of exchange, rather than hoarded as a store of value. If bitcoins got so expensive that they can only just represent a single Vietnamese Dong, then 21,107 “satoshi” would be worth $1 USD, and a single bitcoin would be worth$4737 USD. You’d then only need 739k bitcoins each participating in a transaction once an hour to take care of 75% of the world’s transactions, with the remaining 19M bitcoins acting as a value store worth about $91B. In the grand scheme of things, that’s not really very much money. I think if you made bitcoins much more expensive than that you’d start cutting into the proportion of the world’s transactions that you can actually account for, which would start forcing you to use other cryptocurrencies for microtransactions, eg. Ultimately, I think you’d start hitting practical limitations trying to put 75% of the world’s transactions through a single ledger (ie hitting bandwidth, storage and processing constraints), and for bitcoin, that would mean having alternate ledgers which is equivalent to alternate currencies. That would involve some tradeoffs — for bitcoin-like cryptocurrencies you’d have to account for how volatile alternative currencies are, and how amenable the blockchains are to compromise, but, provided there are trusted online exchanges to convert one cryptocurrency into another, that’s probably about it. Alternate cryptocurrencies place additional constraints on the maximum value of bitcoin itself, by reducing the maximum amount of GWP happening in bitcoin versus other currencies. It’s not clear to me how much value bitcoin has as a value store. Compared to precious metals, is much easier to transport, much easier to access, much less expensive to store and secure. On the other hand, it’s much easier to destroy or steal. It’s currently also very volatile. As a store of value, the only things that would make it better or worse than an alternative cryptocurrency are (a) how volatile it is, (b) how easy it is to exchange for other goods (liquidity), and (c) how secure the blockchain/algorithms/etc are. Of those, volatility seems like the biggest sticking point. I don’t think it’s unrealistic to imagine wanting to store, say,$1T in cryptocurrency (rather than gold bullion, say), but with only 20M bitcoins, that would mean each bitcoin was worth at least $50,000. Given a current price of about$500, that’s a long way away — and since there are a lot of things that could happen in the meantime, I think high volatility at present is a pretty plausible outcome.

I’m not sure if it’s possible or not, but I have to wonder if a bitcoin based cryptocurrency designed to be resistant to volatility would be implementable. I’m thinking (a) a funded exchange guaranteeing a minimum exchange rate for the currency, and (b) a maximum number of coins and coin generation rate for miners that makes that exchange plausible. The exchange for, let’s call it “bitbullion”, should self-fund to some extent by selling new bitbullion at a price of 10% above guidance, and buying at a price of 10% below guidance (and adjusting guidance up or down slightly any time it buys or sells, purely in order to stay solvent).

I don’t know what the crypto underlying the bitcoin blockchain actually is. I’m surprised it’s held up long enough to get to where bitcoin already is, frankly. There’s nominally $6B worth of bitcoins out there, so it would seem like you could make a reasonable profit if you could hack the algorithm. If there were hundreds of billions or trillions of dollars worth of value stored in cryptocurrency, that would be an even greater risk: being able to steal$1B would tempt a lot of people, being able to destroy $100B, especially if you could pick your target, would tempt a bunch more. So in any event, the economic/deflation concerns seem assailable to me. The volatility not so much, but I’m not looking to replace my bank at the moment, so that doesn’t bother me either. I’m very skeptical about the origins of bitcoin. The fact it’s the first successful cryptocurrency, and also the first definitively non-anonymous one is pretty intriguing in my book. Previous cryptocurrencies like Chaum’s ecash focussed on allowing Alice to pay Bob$1 without there being a record of anything other than Alice is $1 poorer, and Bob is$1 richer. Bitcoin does exactly the opposite, providing nothing more than a globally verifiable record of who paid whom how much at what time. That seems like a dream come true for law enforcement — you don’t even have to get a warrant to review the transactions for an account, because everyone’s accounts are already completely public. Of course, you still have to find some way to associate a bitcoin wallet id with an actual person, but I suspect that’s a challenge with any possible cryptocurrency. I’m not quite sure what the status of the digicash/ecash patents are/were, but they were due to expire sometime around now (give or take a few years), I think.

The second thing that strikes me as odd about bitcoin is how easily it’s avoided being regulated to death. I had expected the SEC to decide that bitcoins are a commodity with no real difference to a share certificate, and that as a consequence they can only be traded using regulated exchanges by financial professionals, or similar. Even if bitcoins still count as new enough to only have gotten a knee-jerk regulatory response rather than a considered one (with at $500 a pop and significant mainstream media coverage, I doubt), I would have expected something more along the lines of “bitcoin trading is likely to come under regulation XYZ, operating or using an unregulated exchange is likely to be a crime, contact a lawyer” rather than “we’re looking into it”. That makes it seem like bitcoin has influential friends who aren’t being very vocal in public, and conspiracy theories involving NSA and CIA/FBI folks suggesting leaving bitcoin alone for now might help fight crime, seem more plausible than ones involving Gates or Soros or someone secretly creating a new financial world order. The other aspect is that it seems like there’s only really four plausible creators of bitcoin: one or more super smart academic types, a private startup of some sort, an intelligence agency, or a criminal outfit. It seems unlikely to me that a criminal outfit would create a cryptocurrency with a strong audit trail, but I guess you never know. It seems massively unlikely that a legitimate private company would still be secret, rather than cashing out. Likewise it seems unlikely that people who’d just done it because it seemed like an interesting idea would manage to remain anonymous still; though that said, cryptogeeks are weird like that. If it was created by an intelligence agency, then its life to date makes some sense: advertise it as anonymous online cash that’s great for illegal stuff like buying drugs and can’t be tracked, sucker in a bunch of criminals to using it, then catch them, confiscate the money, and follow the audit trail to catch more folks. If that’s only worked for silk road folks, that’s probably pretty small-time. If bitcoin was successfully marketed as “anonymous, secure cryptocurrency” to organised crime or terrorists, and that gave you another angle to attack some of those networks, you could be on to something. It doesn’t seem like it would be difficult to either break into MtGox and other trading sites to gain an initial mapping between bitcoins and real identities, or to analyse the blockchain comprehensively enough to see through most attempts at bitcoin laundering. Not that I actually have a problem with any of that. And honestly, if secret government agencies lean on other secret government agencies in order to create an effective and efficient online currency to fight crime, that’s probable a win-win as far as I’m concerned. One concern I guess I have though, is that if you assume a bunch of law-enforcement cryptonerds build bitcoin, is that they might also have a way of “turning it off” — perhaps a real compromise in the crypto that means they can easily create forks of the blockchain and make bitcoins useless, or just enough processor power that they can break it by bruteforce, or even just some partial results in how to break bitcoin that would destroy confidence in it, and destroy the value of any bitcoins. It’d be fairly risky to know of such a flaw, and trust that it wouldn’t be uncovered by the public crypto research community, though. All that said, if you ignore the criminal and megalomaniacal ideas for bitcoin, and assume the crypto’s sound, it’s pretty interesting. At the moment, a satoshi is worth 5/10,000ths of a cent, which would be awesome for microtransactions if the transaction fee wasn’t at 5c. Hmm, looks like dogecoin probably has the right settings for microtransactions to work. Maybe I should have another go at the pay-per-byte wireless capping I was thinking of that one time… Apart from microtransactions, some of the conditional/multiparty transaction possibilities are probably pretty interesting too. ### 4 Comments 1. Russell Stuart says: > The idea of making money by running calculations that don’t provide any benefit to anyone is actually kind of offensive IMO. Those calculations do provide benefit. They allow people to conduct bitcoin transactions. In that sense they are no different to the calculations being performed by the credit card networks, or the banks. I’m sure the electrons don’t care if they are used by a mining rig, or to power a tellers light in a bank branch. Still it would be nice if the calculations could be used in the discovery of new knowledge. To do that you need a problem that: 1. Whose solution depends on a bag of bits. 2. The solution is easy to verify once you know it. 3. The solution is only discoverable by checking every possibility. Ie, it is NP hard. Currently the problem is to find an SHA256 hash for the bag of bits that is below a given value. (Various other altcoins have substituted different hashes, but the central idea is the same.) One novel attempt to do something useful is to find counter examples to the Riemann hypothesis ie find a group of large primes that are close together. (I’m not sure how that is useful, but the inventors thought it was.) So aj, here is your opportunity to act as a benefactor for all of mankind. Invent a mining puzzle that does something useful. > On the other hand, it’s much easier to destroy or steal. Certainly easier to destroy. If they don’t address that bitcoin will disappear over time. But addressing it isn’t hard (and it also address the deflation “problem”). Easier to steal? Yes, they can be almost arbitrarily easy to steal, if it you don’t know anything about computers it’s even easy to so unintentionally. But you can also make a$20 note easy to steal by dropping it in a busy high school ground. The main difference is people know they should not leave their wallets lying around, but somehow backing their bitcoins doesn’t occur to them.

But … unlike gold and notes you can also make it arbitrarily hard to steal. For example, so make it as hard as a gold bar to steal, by writing the key inside of the bar so you have to x-ray it to get it out. You want it harder? Split the key across several bars and store them in different places on the planet.

It’s not just theoretical. Some bitcoin clients will encrypt your key, encode it as a QR-Code, and print it plus decode instructions to a PDF, and then give you the key by a separate channel. You are expected to print the PDF and put it in a bank deposit box (or several copies in different places) and save the password to the key other different places. You can then throw all other copies away. The thing is, you can till deposit to your “cold storage” with the public key. You only need access the private key if you want to spend it.

> I’m surprised it’s held up long enough to get to where bitcoin already is, frankly.

Really? The banks have used the same crypto for years now. It has been a juicy target long before bitcoin came along.

> The other aspect is that it seems like there’s only really four plausible creators of bitcoin

Actually, while we don’t know who wrote the bitcoin software, we do know who created the foundations it is built on (ie, bitcoin’s equivalent of Chaum). That is Nick Szabo. He is not a mathematician, a private startup of some sort, an intelligence agency, or a criminal outfit. He is a Law Professor at George Washington University. (Aside: I wonder how that fits into your speculations on bitcoin avoiding regulation.)

> transaction fee wasn’t at 5c

The fee isn’t enforced by the miners, but it is enforced by the relay channels. As of version 0.9.0 it dropped to 0.0001 BTC per kilobyte of transaction. A simple payment takes about 1/3 of a KB. That’s around 0.2c.

With the cessation of mining rewards there will be a little point in enforcing a minimum any more. The rewards are far greater than the mining fees so the miners seem to ignore them. (You occasionally see transactions with 0 fees being processed.) The minimum is there to protect the block chain against attacks that look like spam. Attacking bitcoin has been a popular pastime for years now. When the rewards become negligible the miners won’t pick up transaction that doesn’t pay for the electricity needed to process it. At that point mining will become a pure market, providing a service (securing the block chain) for a fee.

> 52,000 transactions a year, and there are up to 20M bitcoins

Assuming one bitcoin transaction, that translates to a around 10MB of transaction data per second. A good NBN link (as opposed to the CBN) link could maintain that.

Jokes aside, the job has already been partially parallelised as the bitcoin network stratifies into specialities. The relay nodes verify the transactions (which by happy circumstance means all the slow stuff, the crypto, is handled at the network’s edges), other nodes assemble them into blocks (the major check here is to prevent double spends), the mining pools pick up blocks, summarise them into a few SHA256 hashes and hand them out to miners.

The double spend checking is the thing that requires a lots of compute power, but the check itself is literally just a hash lookup, followed by checking setting a bool “spent” flag. The process will require gobs of memory and will be memory bandwidth limited, but it is amenable to sharding. I can’t see it being a problem.

2. aj says:

Hmm, I need to actually review the bitcoin protocol to really comment. I’d distinguish “transformative” work, like signing/encrypting something that actually creates information that’s used later, from “proof of work” that just shows you’ve done something difficult to ensure scarcity, like move rocks from from here to there, then back again.

If the bitcoin stuff were /just/ doing the latter (in the same way that hashcash did), then the blockchain wouldn’t actually be safe against forking. AFAICS, the blockchain is already safe against making the algorithms cheaper/faster, which hashcash wasn’t.

Having the hashing algorithm both secure the block chain and generate independently useful results as a side-effect

>> I’m surprised it’s held up long enough to get to where bitcoin already is, frankly.
> Really? The banks have used the same crypto for years now. It has been a juicy target long before bitcoin came along.

SHA2 is, sure; but crypto is hard because it’s not just a matter of finding secure primitives — exactly how they’re put together and used in the real world matters, and is usually done badly.

> That is Nick Szabo. He is not a mathematician, a private startup of some sort, an intelligence agency, or a criminal outfit. He is a Law Professor at George Washington University. (Aside: I wonder how that fits into your speculations on bitcoin avoiding regulation.)

Based on the trailing comment in http://unenumerated.blogspot.com.au/2009/05/liar-resistant-government.html he seems to view it as related work, but not something he’s responsible for. Unless he is Satoshi, I wouldn’t nominate him as the creator. In any event, looking at his blog, I’d put him as smart, super-interesting academic type. If he did the coding and the improvements from bitgold to bitcoin, add super-smart.

http://unenumerated.blogspot.dk/2011/05/bitcoin-what-took-ye-so-long.html seems about right as to why I’d count Satoshi as the creator of bitcoin, rather than anyone who’d done previous work. Beyond that, there’s something very impressive about having not only made design decisions that work technically, but that are appealing enough to actually put into use.

(Actually, going by “who benefits”, a tax collection agency is another possible contender for the creator of bitcoin — having a public ledger of all transactions available could potentially enhance tax fraud investigations substantially. I don’t find that plausible because I can’t imagine any tax agencies actually having an R&D group capable of making bitcoin, or letting them have the time to develop it. If it happened, they could have been leaned on by law-enforcement types to not claim credit, in order to allow some sting operations against criminal organisations, who might be a bit more suspicious of a cryptocurrency from a tax office, than an anonymous hacker, which would explain the pseudonym, the lack of regulatory problems, and why Satoshi’s bitcoins haven’t been spent)

3. Russell Stuart says:

> SHA2 is, sure; but crypto is hard because it’s not just a matter of finding secure primitives — exactly how they’re put together and used in the real world matters, and is usually done badly.

For what it is worth, bitcoin uses remarkably little crypto. It doesn’t encrypt anything. It uses digital signatures for their intended purpose – signing a transaction to you can prove only you could have created it. And it for the most part it uses hashes purely as compression functions – it create a small bag of bits that can uniquely identify a bigger bags of bits so they don’t task too much space to store in the block chain. The only “novel” use of SHA is in the proof of work, which isn’t novel to bitcoin.

The magic of bitcoin is in how it forces a group of competing miners to rapidly come to a consensus. Once you have wrapped your head around how that works (and in particular what causes the miners to settle on the same set of rules) you understand the core underpinnings of bitcoin. It has very little to do with crypto. As one the blog posts you link to point out, it so simple people now call it obvious and wonder why it took so long to come up with it.

There many outright bugs in the beginning, but they were fixed when fixing them was easy. The current bug that is attracting a lot of attention is the transaction malleability “bugs”. The word bugs (there was multiple all causing the same issue) is in inverted commas because it doesn’t effect the core bitcoin protocol (multiple different looking but otherwise identical transactions are double spends, which it is amply protected against), but makes tracking your transaction in the block chain harder than it need be.

And yes there are probably more bugs, but unlike Chaum’s protocol there isn’t much in the way of crypto magic so they are unlikely to be in the crypto.

> I wouldn’t nominate him as the creator.

This describes the core idea: http://unenumerated.blogspot.com.au/2005/12/bit-gold.html It’s the first paper from anyone that describe it.

Notice that it references something he wrote in 1999. He had been playing with these ideas for a long time.

> he seems to view it as related work, but not something he’s responsible for.

Counter quote from http://unenumerated.blogspot.com.au/2011/01/tech-roundup-012211.html : “Bitcoin, an implementation of the bit gold idea (and another example of where the order of events is important), continues to be popular.”

> I’d put him as smart, super-interesting academic type.

Yes, you were right the first time.

4. Russell Stuart says:

The best explanation of the bitcoin protocol I have come across so far:
http://www.igvita.com/2014/05/05/minimum-viable-block-chain/

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# Solutions to Problem Set 26

Math 211-03

11-9-2017

[Constructing power series]

1. Construct the power series centered at for . Write your answer in summation form, or give the first 4 nonzero terms of the series. In addition, find the interval of convergence.

Let in the series for .

For the interval of convergence, I have . Since a square can't be negative, the relevant part of the inequality is . This gives , or .

2. Construct the power series centered at for . Write your answer in summation form, or give the first 4 nonzero terms of the series. In addition, find the interval of convergence.

Letting in the series for , I get

For the interval of convergence,

3. Construct the power series centered at for . Write your answer in summation form, or give the first 4 nonzero terms of the series. In addition, find the interval of convergence.

Letting in the series for , I get

For the interval of convergence,

4. Construct the power series centered at for . Write your answer in summation form, or give the first 4 nonzero terms of the series. In addition, find the interval of convergence.

Letting in the series for , I get

For the interval of convergence,

5. Construct the power series centered at for . Write your answer in summation form, or give the first 4 nonzero terms of the series. In addition, find the interval of convergence.

Letting in the series for , I get

For the interval of convergence,

6. Construct the power series centered at for . Write your answer in summation form, or give the first 4 nonzero terms of the series. In addition, find the interval of convergence.

Letting in the series for , I get

For the interval of convergence,

7. Construct the power series centered at for . Write your answer in summation form, or give the first 4 nonzero terms of the series. In addition, find the interval of convergence.

The series is centered at , so I want powers of .

Letting in the series for , I get

For the interval of convergence,

8. Find the function to which the power series converges.

Letting in the series for , I find that

9. Find the function to which the power series converges.

Letting in the series for , I find that

Love is not consolation, it is light. - Simone Weil

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