I have a problem of retained sales from the previous year. For instance, x client sell 200 cases of product the first month, 400 the second month, 300 the third and so on. The next year's sales are expected to be retained at a 90% rate. In month 1, the rate of retention is expected to be close to 100%. As the year progresses, that rate should decrease at a given rate but still end up at 90% for the entire year. Can someone help me with figuring out a formula where I can reach the target percentage?
$\endgroup$1 Answer
$\begingroup$You could use the fact that $0.9^{\frac 1{12}}\approx 0.991258$ to say that the retained sales in month $n$ are $0.991258^n$. This is $0.991258$ for $n=1$ and $0.9$ for $n=12$
$\endgroup$ 1
