A.I.M. Users Bulletin Board

[Conrad]

Hi Rico,

You wrote,


Or Mr. Lichello was more of an arithmatic teacher than a math professor, as it would have taken quite some time to figure out the B=1/(1-f) formula out of those repetative (infinate length) updates in the Vortex method. It's probably some kind of standard math formula, but I'm sure he didn't want to open that can of worms. Based on his desire for simplicity and paper and pencil work against the luxury of computers. To each his/her own.

As it happened the infinite series reduction to B=1/(1-f) is indeed a standard formula. But for my considerable work to come to that point there is also a rediculously simple solution that Qarel pointed out to me some time agO:

(1) PC+ Buy=PC+f*Buy=Y3

(2) Y3 = New Equity Value and
(3) Buy=B*(PC-Y2)

Equation (1) reduces to an equation with only one unknown B and gives the answer quite without any mathematical pains!!!!

B=1/(1-f)

I will see how long it will take to get the revised issue of the book published.

Conrad