Compound Interest

building reports webintelligence
1

Does any-one know how to calculate the net effect of a number of interest rates?

In my example we have a fund, and I have the percentage growth that fund has achieved over a few months. I need to show both the month on month compound effect of the growth, as well as the full compounded effect of the growth.

Period End Date…Fund Return…Percentage Compound Return
31/07/2008… 0.21 %…100.21%
31/08/2008…-1.27 % …98.94%
30/09/2008…-4.90 % …94.09%
31/10/2008…-5.91 % …88.53%
30/11/2008…-9.61 %…80.02%
31/12/2008…-4.55 % …76.38%

In the above example I have tried using RunningProduct([Fund Return] + 1). This would work if only I could stop it applying the addition to the first row.

This is a real problem where I currently am as the organisation is only interested in growth and decline of funds over time, and need to know the net effect of these changes.

It would of course have been easier if they kept fund values, then I could just get the difference and divide, but its no-where near as simple as that (why would it be :hb: ).

Anyway, any ideas?

It would have been good if BO came with some financial functions, especially those around working with percentages and interest rates.

Many thanks

bungy :us: (BOB member since 2007-10-04)

2

Have you looked at some the Financial products on offer, rather than the core reporting products?

dessa :madagascar: (BOB member since 2004-01-29)

3

no i haven’t, but then they only have licences for webi.

bungy :us: (BOB member since 2007-10-04)

4

Hi,
If the formula that you used is working and gives correct results then why not using it?

Marek Chladny :slovakia: (BOB member since 2003-11-27)

5

The formula I have used is only half working.

The answers should be something like:

Period End Date…Fund Return…Percentage Compound Return
31/07/2008… 0.21 %…0.21%
31/08/2008…-1.27 % …0.17%
30/09/2008…-4.90 % …0.15%
31/10/2008…-5.91 % …0.13%
30/11/2008…-9.61 %…0.11%
31/12/2008…-4.55 % …0.10%

Because i have to add 1 to the formula, it messes up the first figure, and because it is cumulative, every subsequent figure is wrong to.

I hope I am making sense.

bungy :us: (BOB member since 2007-10-04)

6

Can you explain the formula/calculation that gives you the 3rd column (Percentage Compound Return)?

Marek Chladny :slovakia: (BOB member since 2003-11-27)