index values

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
Divide by where you are and times by where you want to be<BR><BR>Year 1 30000 sales<BR>Year 2 32750 sales<BR>year 3 33175 sales<BR><BR>index<BR><BR>Year 1 102<BR>year 2 106<BR>year 3 108<BR><BR>so to get year 1 sales to year 3 indexed figure:<BR><BR>30000 / 102 x 108 = 31765<BR><BR>year 2 sales to year three indexed figure<BR><BR>32750 / 106 x 108 = 33368<BR><BR>Hope this helps!<BR><BR>Katherine

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    index values

    Cheers Katherine. <BR>Will attempt to see how it works out now.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    index values

    Should u not multiply the sales value for yr 1 by the RPI for yr 1, then divide it by the yr 3 in order to bring the figure to yr 3 RPI figure.<BR><BR>I am confused with this RPI stuff!<BR><BR>Then in todays monetary terms, the sales achieved in yr 1 were less value than stated etc. As in theroy the £ is worth less now than then!<BR><BR>30,000 x 102 / 108 = 28333<BR>32750 x 106 / 108 = 32143<BR><BR>Sorry to be a pain, but think i am confusing myself now
  • System
    System Posts: 100,534 🤖 Admin 🤖
    index values

    It depends on which year you are using as your base year.<BR><BR>If it's year 1, then you divide year 2 by year 2 index, multiply by year 1 index; divide by year 3 by year 3 index and multiply by year 1 index.<BR><BR>If it's year 3, then Katherine's reply is appropriate.<BR><BR>Mike<BR>

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