#### problem combining 2 formulas

```Hello, I have two rates of exhange and I want to find the mid point and
deduct 3% all in one formula.

The bank buy rate is  1.6706 (cell a1)
The bank sell rate is  1.6085 (cell a2)

so =sum(a1-a2)/2 gives me the difference beween the two rates and I divide
by 2 to find the basis for the mid point which is 0.03105 (cell a3)

Then I create another formula (a3 + a2)*0.97 to give me the mid point -3%
(or 97% of it the same either way)

How can I combine the two formulas?  I always seem to have a problem with
circular refererences.

thanks

kinsey

--
kinsey
```
 0
kinsey (18)
8/30/2009 7:51:01 AM
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```"kinsey" <kinsey@discussions.microsoft.com> wrote:
> How can I combine the two formulas?

=(1 - 3%) * (a1 + a2) / 2

> so =sum(a1-a2)/2 gives me the difference beween the two
> rates and I divide by 2 to find the basis for the mid point
> which is 0.03105 (cell a3)
> Then I create another formula (a3 + a2)

The easier way to compute the midpoint is:

=(a1 + a2) / 2

FYI, your first formula, which computes have the difference, could be
written more simply as:

=(a1 - a2) / 2

No need and no point to use the SUM function.

----- original message -----

"kinsey" <kinsey@discussions.microsoft.com> wrote in message
news:F14A0801-F59C-446C-84F9-D523746321FF@microsoft.com...
> Hello, I have two rates of exhange and I want to find the mid point and
> deduct 3% all in one formula.
>
> The bank buy rate is  1.6706 (cell a1)
> The bank sell rate is  1.6085 (cell a2)
>
> so =sum(a1-a2)/2 gives me the difference beween the two rates and I divide
> by 2 to find the basis for the mid point which is 0.03105 (cell a3)
>
> Then I create another formula (a3 + a2)*0.97 to give me the mid point -3%
> (or 97% of it the same either way)
>
> How can I combine the two formulas?  I always seem to have a problem with
> circular refererences.
>
> thanks
>
> kinsey
>
>
>
> --
> kinsey

```
 0
joeu2004 (766)
8/30/2009 8:00:09 AM
```PS....

I wrote:
"kinsey" <kinsey@discussions.microsoft.com> wrote:
> > so =sum(a1-a2)/2 gives me the difference beween the two rates and I
> > divide by 2 to find the basis for the mid point which is 0.03105 (cell
> > a3)
> > Then I create another formula (a3 + a2)*0.97 to give me the mid
> > point -3%
> > [....]
> > How can I combine the two formulas?
>
> =(1 - 3%) * (a1 + a2) / 2

I dutifully copied the computation in your original article.  Note that:

(a3 + a2) = ((a1 - a2) / 2 + a2) = (a1 - a2 + 2*a2) / 2 = (a1 + a2) / 2

But now I wonder if your original formula is computing what you intended.

Do you want to reduce the midpoint value (1.63955) by 3%, as you are doing?

Or do you really want to reduce the difference between the low end and the
midpoint (0.03105 = 1.63955 - 1.6085) by 3%?

If the latter, you might want the formula:

=a2 + (1 - 3%) * (a1 - a2) / 2

If you are not sure, ask yourself the following question:  what result would
you expect if you "reduced the midpoint by 100%"?

If your answer is:  you expect the low-end number (1.6085), then you want
the second formula.

If your answer is:  you expect zero, then you want the first (original)
formula.

----- original message -----

"kinsey" <kinsey@discussions.microsoft.com> wrote:
> How can I combine the two formulas?

=(1 - 3%) * (a1 + a2) / 2

> so =sum(a1-a2)/2 gives me the difference beween the two
> rates and I divide by 2 to find the basis for the mid point
> which is 0.03105 (cell a3)
> Then I create another formula (a3 + a2)

The easier way to compute the midpoint is:

=(a1 + a2) / 2

FYI, your first formula, which computes have the difference, could be
written more simply as:

=(a1 - a2) / 2

No need and no point to use the SUM function.

----- original message -----

"kinsey" <kinsey@discussions.microsoft.com> wrote in message
news:F14A0801-F59C-446C-84F9-D523746321FF@microsoft.com...
> Hello, I have two rates of exhange and I want to find the mid point and
> deduct 3% all in one formula.
>
> The bank buy rate is  1.6706 (cell a1)
> The bank sell rate is  1.6085 (cell a2)
>
> so =sum(a1-a2)/2 gives me the difference beween the two rates and I divide
> by 2 to find the basis for the mid point which is 0.03105 (cell a3)
>
> Then I create another formula (a3 + a2)*0.97 to give me the mid point -3%
> (or 97% of it the same either way)
>
> How can I combine the two formulas?  I always seem to have a problem with
> circular refererences.
>
> thanks
>
> kinsey
>
>
>
> --
> kinsey

```
 0
joeu2004 (766)
8/30/2009 8:41:30 AM
```Joe, many thanks.  This works well.  I always learn a lot from forum
--
kinsey

"JoeU2004" wrote:

> PS....
>
> I wrote:
> "kinsey" <kinsey@discussions.microsoft.com> wrote:
> > > so =sum(a1-a2)/2 gives me the difference beween the two rates and I
> > > divide by 2 to find the basis for the mid point which is 0.03105 (cell
> > > a3)
> > > Then I create another formula (a3 + a2)*0.97 to give me the mid
> > > point -3%
> > > [....]
> > > How can I combine the two formulas?
> >
> > =(1 - 3%) * (a1 + a2) / 2
>
> I dutifully copied the computation in your original article.  Note that:
>
> (a3 + a2) = ((a1 - a2) / 2 + a2) = (a1 - a2 + 2*a2) / 2 = (a1 + a2) / 2
>
> But now I wonder if your original formula is computing what you intended.
>
> Do you want to reduce the midpoint value (1.63955) by 3%, as you are doing?
>
> Or do you really want to reduce the difference between the low end and the
> midpoint (0.03105 = 1.63955 - 1.6085) by 3%?
>
> If the latter, you might want the formula:
>
> =a2 + (1 - 3%) * (a1 - a2) / 2
>
> If you are not sure, ask yourself the following question:  what result would
> you expect if you "reduced the midpoint by 100%"?
>
> If your answer is:  you expect the low-end number (1.6085), then you want
> the second formula.
>
> If your answer is:  you expect zero, then you want the first (original)
> formula.
>
>
> ----- original message -----
>
> "kinsey" <kinsey@discussions.microsoft.com> wrote:
> > How can I combine the two formulas?
>
> =(1 - 3%) * (a1 + a2) / 2
>
>
> > so =sum(a1-a2)/2 gives me the difference beween the two
> > rates and I divide by 2 to find the basis for the mid point
> > which is 0.03105 (cell a3)
> > Then I create another formula (a3 + a2)
>
> The easier way to compute the midpoint is:
>
> =(a1 + a2) / 2
>
> FYI, your first formula, which computes have the difference, could be
> written more simply as:
>
> =(a1 - a2) / 2
>
> No need and no point to use the SUM function.
>
>
> ----- original message -----
>
> "kinsey" <kinsey@discussions.microsoft.com> wrote in message
> news:F14A0801-F59C-446C-84F9-D523746321FF@microsoft.com...
> > Hello, I have two rates of exhange and I want to find the mid point and
> > deduct 3% all in one formula.
> >
> > The bank buy rate is  1.6706 (cell a1)
> > The bank sell rate is  1.6085 (cell a2)
> >
> > so =sum(a1-a2)/2 gives me the difference beween the two rates and I divide
> > by 2 to find the basis for the mid point which is 0.03105 (cell a3)
> >
> > Then I create another formula (a3 + a2)*0.97 to give me the mid point -3%
> > (or 97% of it the same either way)
> >
> > How can I combine the two formulas?  I always seem to have a problem with
> > circular refererences.
> >
> > thanks
> >
> > kinsey
> >
> >
> >
> > --
> > kinsey
>
>
```
 0
kinsey (18)
8/30/2009 9:08:01 AM

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