Exponential depreciation of a car's value resulted in a 50% decrease over 5 years.
If your investment appreciates in value by 10% each year, how long will it take for a 100% increase (give years and months to nearest month).
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I've figured out the percentage decrease each year is approximately 13%.
I went y = yoa^t [yo = y not]
Decay factor: a^5 = 1/2
a = fifthroot of (1/2)
a = 0.87055
1 - 0.87055
So if it appreciates in 10%, do I change 50% to 60%? I'm kind of confused, thanks. If my method is incorrect so far, please let me know.
If your investment appreciates in value by 10% each year, how long will it take for a 100% increase (give years and months to nearest month).
----
I've figured out the percentage decrease each year is approximately 13%.
I went y = yoa^t [yo = y not]
Decay factor: a^5 = 1/2
a = fifthroot of (1/2)
a = 0.87055
1 - 0.87055
So if it appreciates in 10%, do I change 50% to 60%? I'm kind of confused, thanks. If my method is incorrect so far, please let me know.