Memorization Tip - R4 vs. R5 Formula for Base RBC
Hey everyone,
This tip might only work for me, but I thought I'd share it just in case. Here are the two formulas (as written) for the Base RBC (R4 & R5):
R4: Base RBC = [[ (C+1) x A ] -1 ] x (Reserves)
R5: Base RBC = (current yr NWP) x [ (C x A) + U - 1 ]
I have trouble memorizing the bracket contents (and getting them confused between each other).
I rearranged the terms to help memorize the formulas:
R4: Base RBC = (Reserves) x [(C x A) + A -1 ]
R5: Base RBC = (current yr NWP) x [(C x A) + U -1 ]
Now, the formula in my head simplifies to one formula for both:
R4 or R5: Base RBC = (Something1) x [(C x A) + Something2 -1 ]
where Something1 is NWP or Reserves, depending on R4 or R5 (Easy to remember)
and where Something2 is A if R4 (more investment income from Reserves?)
and where Something2 is U if R5 (dealing with NWP so we need to add UW expense somewhere)
Doubt this helps anyone, but it makes things easier in my head.
Comments
The way you wrote your formula does make more sense - putting the "base" as the 1st term and then the C/A/U part second.
I inserted a link to your tip in the wiki at the end of the R4 section of the Odomirom.19-RBC wiki article. Thanks!
I like this. Thank you! I've noticed calculations come up much less frequently for R_4, so having "one" formula is helpful if the committee decides this sitting to spring one on us.
Thank you! I think this will make it easier for me to remember too
I like this way of arranging the terms, I'm definitely using this set up. Thanks!