Created
October 23, 2021 14:57
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if a business has $x revenue and $y% fixed growth rate every year, how much revenue will it have in the next $z years?
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| from pprint import pprint | |
| def calc_growth(revenue, fixed_rate, years): | |
| """Calculate growth rate | |
| revenue: Initial revenue. | |
| fixed_rate: fixed rate to grow in a year. It's between 0 and 1. | |
| years: number of years. | |
| """ | |
| init_revenue = revenue | |
| output = [] | |
| for year in range(1, years + 1): | |
| revenue = revenue + (revenue * fixed_rate) | |
| cum_growth_rate = (revenue - init_revenue) / 100 / 10 | |
| year_status = { | |
| "year": year, | |
| "revenue": round(revenue, 3), | |
| "cum_growth_rate": round(cum_growth_rate, 3), | |
| } | |
| output.append(year_status) | |
| return output | |
| # if a business has 1000 revenue and 13% fixed growth rate every year, how | |
| # much revenue will it have in the next 5 years? | |
| out = calc_growth(1000, 0.13, 5) | |
| pprint(out) | |
| # [{'cum_growth_rate': 0.13, 'revenue': 1130.0, 'year': 1}, | |
| # {'cum_growth_rate': 0.277, 'revenue': 1276.9, 'year': 2}, | |
| # {'cum_growth_rate': 0.443, 'revenue': 1442.897, 'year': 3}, | |
| # {'cum_growth_rate': 0.63, 'revenue': 1630.474, 'year': 4}, | |
| # {'cum_growth_rate': 0.842, 'revenue': 1842.435, 'year': 5}] |
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