Trying to multiply and divide percentages

[mtdew]

This Excel formula is throwing me for a loop. I am trying to determine the tax amount for monies received. Yet sometimes the monies received have to have a late fee deducted. After the late fee is deducted I then find the tax amount. That's the problem.

If I say =(50.45-20)-(50.45-20)/1.09
the answer is $2.51
50.45 is the payment
20 is the late fee
9% is the tax

But, if I say =30.45*9%
the answer is $2.74 YET the formulas appear to me to be doing the same thing. Can you see what I am doing wrong?

 

[smah]

Try:
(50.45-20)-(50.45-20)*(1-.09)

 

[macropod]

Hi mtdew,

1. Is the late fee taxed?
2. Is the 9% tax calculated as 9% of the post-tax price, or by adding 9% to the pre-tax price (eg if the post-tax price is $100, is the the pre-tax price $91.00 (tax=$9.00) or $91.74 (tax=$8.26))?


Cheers
[MS MVP - Word]

 

[AnotherHiggins]

After the late fee is deducted I then find the tax amount. That's the problem.

So it sounds like you're good up until it comes to finding the original price to which 9% tax was added resulting in the $30.45 payment.

See my reply in thread68-1396937.

Change your formula from =30.45*9% to:
[tab][COLOR=blue white]=30.45/(1+9%)[/color]

That will give you [blue]30.45/(1+0.09)[/blue] = [blue]30.45/1.09[/blue] = [blue]27.94[/blue]

27.94 (billed amt) * .09 (tax rate) = 2.51 (tax due)

27.94 (billed amt) + 2.51 (tax due) = 30.45 (payment)

Is that what you were after?

[tt][blue]-John[/blue][/tt]
[tab][red]The plural of anecdote is not data[/red]

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