Determine the rate of depreciation : F=P(1-i)^t 400000=208802.50(1-i)^4. I'm looking for I in this equation.
+130511 400000=208802.50(1-i)^4 divide both sides by 208802.50
(400000/208802.50) = (1 - i)^4 take the log of both sides
log(400000/208802.50) = log(1-i)^4 and by a log property, we can write
log(400000/208802.50)= 4log(1-i) divide both sides by 4
log(400000/208802.50)/ 4 = log(1 - i) and in exponential form ,we have
10 ^ (log(400000/208802.50)/ 4 ) = 1 - i and rearranging, we have
i = 1 - 10 ^ (log(400000/208802.50)/ 4 ) = -(3/17)
Note that this makes mathematical sense, because the expression (1 - i) = (1 - (-3/17)) = (1 + 3/17) which is greater than 1. (I just wonder if this equation actually deals with depreciation. This looks more like a "growth" equation, rather than a "decay" equation.)
+130511 400000=208802.50(1-i)^4 divide both sides by 208802.50
(400000/208802.50) = (1 - i)^4 take the log of both sides
log(400000/208802.50) = log(1-i)^4 and by a log property, we can write
log(400000/208802.50)= 4log(1-i) divide both sides by 4
log(400000/208802.50)/ 4 = log(1 - i) and in exponential form ,we have
10 ^ (log(400000/208802.50)/ 4 ) = 1 - i and rearranging, we have
i = 1 - 10 ^ (log(400000/208802.50)/ 4 ) = -(3/17)
Note that this makes mathematical sense, because the expression (1 - i) = (1 - (-3/17)) = (1 + 3/17) which is greater than 1. (I just wonder if this equation actually deals with depreciation. This looks more like a "growth" equation, rather than a "decay" equation.)
