Hi, I need to write an Excel formula and I am trying to double check my work.

We are asked to find the difference and relative difference for this account.

So the values are:

$10,000
$10,700
$11,400
$12,100
$12,800
$13,500
etc.

The difference for each is $700

I have two ways to calculate relative difference:
1) difference/original value or
2) new value - original value/original value

If I do the first one, my Excel formula would be =700/10,700 = 6.54%. Assume those numbers are in cells A3 and B3, so the formula would be B3/A3. ($10,000 in A3, $700 difference in B3)

However, if I use the second formula using the first two values, assuming the $10,000 is in A2, $10,700 is in A3, and difference of $700 is in B3. I would get 10,700 - 10,000/10,000 = 7%. Formula would be (A3 - A2)/A2
The $10,000 would be the original value, and the new value would be the $10,700, so why am I getting a different percentage.

When I copy this formula all the way down, I am one year off. So the percent for year 5 in the first formula is in year 6 for the second, and so forth.

Obviously I'm missing something here, but just am not seeing what.

I'm sorry I tried to make this as clear as possible. I tried to copy and paste the spreadsheet but was not able to do so in a neat format.

Thank you.

No problem, I can help you understand what might be going wrong with your Excel formulas.

First, let's address the difference calculation. Based on the values you provided, the difference for each value should indeed be $700. When dragging the formula down to calculate the difference for subsequent values, make sure you are referencing the correct cells so that the formula remains consistent. For example, if the first value is in cell A2 and the second value is in cell A3, the formula in cell B3 should be "=A3-A2". When you drag this formula down, Excel will automatically adjust the references accordingly (e.g., the formula in cell B4 will become "=A4-A3", and so on).

Now, for the relative difference calculation, the formula you mentioned with the first method (difference/original value) is correct. In cell C3, you can use the formula "=B3/A3" to calculate the relative difference for the first value. Again, make sure you have the correct cell references when dragging this formula down.

Regarding the second method you mentioned (new value - original value/original value), there seems to be a mistake. The correct formula would be "(A3-A2)/A2" in cell D3. This formula calculates the difference between the new value (A3) and the original value (A2), and then divides by the original value (A2). However, when you drag this formula down, it seems you are experiencing an offset by one year. This could be happening because you may not be dragging the formula starting from the correct cell. Make sure the formula is entered in cell D3, and then drag it down to calculate the relative difference for each subsequent value.

By following these steps, you should be able to calculate the correct difference and relative difference for each account value in Excel. Let me know if there's anything else I can assist you with!

It seems like you are trying to calculate the relative difference between consecutive values in an account. Let's review your calculations and formulas step-by-step to identify what might be causing the discrepancy:

1) Using the formula: difference/original value
In this case, you are calculating the relative difference by dividing the difference between two values by the original value. However, it appears that you are dividing the difference by the value in A3, which is not the original value. To fix this, you should be dividing the difference ($700) by the original value ($10,000). Therefore, your formula should be:
=B3/A2

2) Using the formula: new value - original value/original value
In this formula, you are subtracting the original value from the new value, then dividing that difference by the original value. However, it seems that you are using the wrong cell references. To calculate the relative difference between A3 and A2, you should subtract A2 from A3, and then divide it by A2. Therefore, your formula should be:
=(A3 - A2)/A2

To copy these formulas down, you should make sure that the relative references are correct. For example, if you want to copy the formula in B3 to B4, you should make sure that the formula adjusts the cell references appropriately. If you are using relative references, you can simply copy the formula from B3 and paste it into B4, and it will adjust automatically.

For example, if you copy the formula =B3/A2 from B3 to B4, Excel will automatically adjust it to =B4/A3. Similarly, if you copy the formula =(A3 - A2)/A2 from B3 to B4, Excel will adjust it to =(A4 - A3)/A3.

I hope this clarifies the issue. Let me know if you have any further questions!