I am looking for conversion based on daily values to annualized values. However, these are NOT for returns, but for amounts.
For returns based conversions, the standard formula to use is well-known:
Annual returns = (1+Daily returns)^365 – 1
My requirement is a bit different. I need to pay my staff based on the daily sale value (which is not really returns) - hence the question.
Consider the following values of sales made on a daily basis for each business day of the October month:
Date Sale($)
01-Oct-20 395.54
02-Oct-20 388.35
05-Oct-20 393.19
06-Oct-20 389.71
07-Oct-20 394.28
08-Oct-20 396.27
09-Oct-20 399.7
12-Oct-20 406.64
13-Oct-20 403.51
14-Oct-20 399.5
15-Oct-20 399
16-Oct-20 400.65
19-Oct-20 400.09
20-Oct-20 401.41
21-Oct-20 400.15
22-Oct-20 400.24
23-Oct-20 401.04
26-Oct-20 395.01
27-Oct-20 393.27
28-Oct-20 383.76
29-Oct-20 383.62
30-Oct-20 377.59
I pay my staff 3% commission ANNUALLY for the sale they make. The calculations for 3% are ANNUAL, but payments need to be made on a MONTHLY basis.
So essentially, the questions are:
(1) For the above case of October month DAILY sales figures, how do I arrive at an ANNUAL value on which this 3% payment can be applied?
(2) Since the answer to (1) will be ANNUAL value, how can it be converted to MONTHLY payment amount (for Oct month)?
Please help!