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23 March, 13:14

Determine how long, in years, it will take for the value of a motor vehicle to decrease to 25% of its original value if its rate of depreciation, based on the reduced-balance method, is 21% per annum.

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  1. 23 March, 14:15
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    100 (1 -.21) ^t = 25

    .79^t =.25

    log (.79^t) = log. 25

    t log. 79 = log. 25

    t = log. 25/log. 79 = 13.7 years
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