To calculate the back index, divide the current index value by ( 1+ r )n where r is the rate of return and n is the number of periods
Back Index Calculator
Enter any 3 values to calculate the missing variable
The Back Index (BI) is a useful measure to calculate the present value of an index over a certain period. It is commonly used to assess historical index values in relation to time and growth rates. This helps in determining the past value of an index considering its current value and the rate of return over time.
Formula:
Where:
- = Back Index
- = Rate of return (in decimal form)
- = Number of periods
- = The index value at present
How to Calculate ?
- Determine the current index value.
- Identify the rate of return () and express it as a decimal.
- Specify the number of periods () for which you want to calculate the back index.
- Apply the formula: Divide the current index value by
Solved Calculations
Example 1:
- Current Index Value: 1500
- Rate of Return (): 5% (0.05)
- Number of Periods (): 10 years
| Parameter | Value |
|---|---|
| Current Index Value | 1500 |
| Rate of Return () | 0.05 |
| Number of Periods () | 10 |
| Back Index (BI) | 922.74 |
Answer: The back index is 922.74.
Example 2:
- Current Index Value: 2000
- Rate of Return (): 7% (0.07)
- Number of Periods (): 5 years
| Parameter | Value |
|---|---|
| Current Index Value | 2000 |
| Rate of Return () | 0.07 |
| Number of Periods () | 5 |
| Back Index (BI) | 1428.57 |
Answer: The back index is 1428.57.
What is Back Index Calculator ?
The Back Index Calculator helps assess the level of disability related to back pain. It uses a score based on responses to specific questions about your back pain and how it affects daily activities. The Oswestry Disability Index is a common tool used in this calculation. It shows how back pain impacts your life, including work and personal activities.
To calculate the back index score, you answer questions that cover various aspects of your condition. Each answer has a score, and the total gives you your back index score. This score helps doctors understand how severe your disability is and what treatment might be necessary.
Understanding your back index score can be helpful. It shows how much your back pain affects you. Higher scores mean more disability. If you want to learn more about your back health, using a back index calculator can be a great first step.
