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Diep
25 Apr 11 13:23
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Date Joined: 09 May 09
| Topic/replies: 155 | Blogger: Diep's blog
My maths days are long gone and I need help with a simple problem that I can't work out anymore!

Trying to work out a formula for decay of interest rate such that if i plot it the x axis goes fro 0 to 1 and the y axis goes fro 0 to 1000.
I want the y axis value of 0 to equal to 1 on the x axis.
I want the y axis value of 1000 to equal 0 on the x axis.

However I dont want just a linear straight line inverse law ie x=y/1000
I want it to decay logarithmically to give a curve such that the y value of 500 is approx = to 0.33 or whatever it needs to give a proportionate curve.

Anyone help?

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Replies: 2
By:
structuredbet
When: 25 Apr 11 23:27
for 0 to 1000: y=(x/1000)^p

where the choice of p will charge the shape of the curve.

p = 1 is linear.

i think you probably are after p= goldenratio = [sqrt(5)+1]/2 = 1.618 ish

that makes your 500= 0.3258
By:
Diep
When: 27 Apr 11 13:21
Perfect! Thankyou! Rather than trying to make a fixed percentage profit per time period eg 1000 days I want a percentage that decreases so as to make the risk less as my bank grows. Many thanks. I will post how I get on with this concept.
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