Analyzing Circular Calculations and Finding Acceptable Error for Interest Expense

In this meeting, the State Changers discuss a problem with circularity in an Excel model. They focus on finding the interest expense that will allow them to pay down a certain debt. They explore the idea of using iterative calculations and mention the possibility of using a solver. They refer to a previous problem they worked on using automatic differentiation in Xano and discuss the concept of driving down the error to find the correct answer. They identify the interest expense as the unknown variable they need to solve for and discuss the idea of comparing the implied cash flow with the actual cash flow to determine the error. They suggest creating a function that takes input variables and outputs the implied cash flow to iterate over until the error is minimized. They acknowledge that there is more work to be done and encourage the participant to post their progress on the forum. They also mention the usefulness of sharing loom videos for problem-solving.

(Source: Office Hours 6/26/23 )

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