Fun Formula Question
I need a formula to figure out the following.
I have a pot of $10,620, of which 354 people contributed $30.00. (This is a "RunBet" app challenge.)
Each day, people drop out of being eligible for the pot for various reasons, leaving the remaining people to split the pot after 28 days.
If the company typically takes 25% of the pot, but also guarantees that everyone remaining in the challenge on the final day receives *at least* their $30.00 back, what is the running formula to calculate how much each person remaining, on each day of the challenge up until the final day, could estimate receiving?
Thanks!
I have a pot of $10,620, of which 354 people contributed $30.00. (This is a "RunBet" app challenge.)
Each day, people drop out of being eligible for the pot for various reasons, leaving the remaining people to split the pot after 28 days.
If the company typically takes 25% of the pot, but also guarantees that everyone remaining in the challenge on the final day receives *at least* their $30.00 back, what is the running formula to calculate how much each person remaining, on each day of the challenge up until the final day, could estimate receiving?
Thanks!
David Johnson, CD
To begin if the company takes 25% then the pot is only 7965 if we divide this by 30 then 12 people must drop out for each to get $30 so if less than 12 people drop out then the company can't both get 25% and pay out the minimum $30
ASKER CERTIFIED SOLUTION
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ASKER
David: Correct. The precedent is the people, who would get their $30 minimum back first, while the company would get a lesser fraction of the 25% until enough people drop out, in which case the company would only take a maximum of 25%.
N2FC: Correct! The guaranteed minimum of $30 takes precedence over the 25% payout. You get the full credit for the question. Also, how do I credit you further to answer how many players it would take to drop out, before each remaining player would earn more than their $30 minimum? I am attached a spreadsheet of how I've incorporate variables (entered in highlighted cells) to your formula. Thank you!!
N2FC: Correct! The guaranteed minimum of $30 takes precedence over the 25% payout. You get the full credit for the question. Also, how do I credit you further to answer how many players it would take to drop out, before each remaining player would earn more than their $30 minimum? I am attached a spreadsheet of how I've incorporate variables (entered in highlighted cells) to your formula. Thank you!!
ASKER
Thank you!