Thread: 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

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.

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

Just continue the pattern I have started for you.

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