Memorization Tip - R4 vs. R5 Formula for Base RBC

edited October 2019 in Odomirok.19-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!

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