The 1997 value of an object was $9500. In 2012, it was worth $5000. The annual percent of decay has been constant. What is the annual percent of decay?
1997-2012 = 11 years
9500-5000 = 4500 $
11* 4500 = 49,500 *0,0001 = 4.95 %
Answer 4.95%
5000/9500=0.526316 total discount over 15 years
.526316^(1/15)=0.958112 discount per year, so that:
.958112^15 x 9,500 =$5,000.00
In answer # 2, I didn't realize you wanted annual percentage rate:
1 - .958112 =0.041888 x 100 =4.19% annual percentage discount.
