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Math Help - Need help calculating compound profit

  1. #1
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    Need help calculating compound profit

    Hi folks. I need help calculating compound proft and total sales. Say i am buying a product and selling it, how much total profit would i have after 26 weeks

    Capital =$5000
    Buying price =$25/unit
    selling price =$37/unit
    Profit per unit =$12
    Opening stock = 200 units

    So initially i buy 200 units (5000 /25) which is capital/unit price.
    Assuming i but and sell stock every 7 days/1 week and reinvest the profit per unit to create more capital, how much capital and profit would i have created after 26 weeks trading

    Along with your answer please include the formula so i can familiarise myself with it

    Thank you very much in advance
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  2. #2
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    Re: Need help calculating compound profit

    After the first week you have a profit of 200*($37-$25) = $2400

    Buying in the second week you have ($2400+$5000)/$25 = 296 units. Profit will be 296* ($37-$25) = $3552

    Buying in the third week you have ($2400+$5000+$3552)/$25 = ... units. Profit will be ...* ($37-$25) = ...

    And so on.
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  3. #3
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    Re: Need help calculating compound profit

    Thanks for the reply Pickles but is it possible to do for the whole 26 weeks, you dont necessarily have to show the whole calculation

    Thanks
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  4. #4
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    Re: Need help calculating compound profit

    Just continue the pattern I have started for you.

    A spreadsheet will make the process easier if you have one on hand.
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