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How to do this question about money decreasing? 

 

 

 
Guest Dec 7, 2017
edited by Guest  Dec 7, 2017

Best Answer 

 #1
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FV = PV x {1 + R}^N

5,800 =115,000 x {1 - 0.22}^N  divide both sides by 115,000

0.0504347826 = 0.78^N             Take the log of both sides

N =log(0.0504347826) / log(0.78)

N = ~ 12 Years to depreciate to about $5,800.

 
Guest Dec 7, 2017
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1+0 Answers

 #1
avatar
+1
Best Answer

FV = PV x {1 + R}^N

5,800 =115,000 x {1 - 0.22}^N  divide both sides by 115,000

0.0504347826 = 0.78^N             Take the log of both sides

N =log(0.0504347826) / log(0.78)

N = ~ 12 Years to depreciate to about $5,800.

 
Guest Dec 7, 2017

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