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21 December, 02:43

An automobile depreciates by 20% per year. how soon will it be worth only half its original value? [hint: depreciation is like interest but at a negative rate r.]

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  1. 21 December, 04:31
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    1/2p=p (1-0.2) ^t

    1/2 = (1-0.2) ^t

    1/2 = (0.8) ^t

    Log (1/2) = t*log (0.8)

    T=log (1:2) : log (0.8)

    T=3.1 years
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