Exponential Decay) 4\ The value of a car declines exponentially at 7.5% per year. Find the original value of the car if its value when it was 4 years old was OMR 14816.36. Use this formula: P = Pe(-r.t)
Exponential Decay) 4\ The value of a car declines exponentially at 7.5% per year. Find the original value of the car if its value when it was 4 years old was OMR 14816.36. Use this formula: P = Pe(-r.t)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Exponential Decay)
4\ The value of a car declines exponentially at 7.5% per year. Find the original value of the car if its value when it was 4 years old was OMR 14816.36.
Use this formula: P = Pe(-r.t)
Expert Solution
Step 1
Given:
Interest rate = 7.5%
Years = 4
Future value = OMR 14,816.36
Step by step
Solved in 2 steps
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