I am presented with this equation:
0.416667 = (1/12)+(1/12/9*8)+(1/12/9*7)+(1/12/9*6)+…
It is supposed to represent a linear progression over 9 months in one year. The rate is at 41.67%.
I understand 1 divided by 12 to get the value of one month in a year, but then why is it then divided again by 9?
If you wanted to figure out the total value for 8 months or something, wouldn't you just do this --> 1 divided by 12, multiplied by 8? I don't get it.
0.416667 = (1/12)+(1/12/9*8)+(1/12/9*7)+(1/12/9*6)+…
It is supposed to represent a linear progression over 9 months in one year. The rate is at 41.67%.
I understand 1 divided by 12 to get the value of one month in a year, but then why is it then divided again by 9?
If you wanted to figure out the total value for 8 months or something, wouldn't you just do this --> 1 divided by 12, multiplied by 8? I don't get it.
-
This is written poorly but what you are looking at is all the months rates' over 9 months added together and then divide by 9 for the average so pull out all the 9s and you get each months added together
Like this [1/12+(1/12)*1+(1/12)*2...(1/12)*8] and then divided by the total of 9 or
[1/12+(1/12)*1+(1/12)*2...(1/12)*8]/9
This isn't looking for the total of something that would be just the 8*1/12 but the rate
Like this [1/12+(1/12)*1+(1/12)*2...(1/12)*8] and then divided by the total of 9 or
[1/12+(1/12)*1+(1/12)*2...(1/12)*8]/9
This isn't looking for the total of something that would be just the 8*1/12 but the rate