Interest problem, simple

a car typically loses one half of its value in its first four years. What is the annual depreciation rate as a percentage?

i need help solving this using the formula...A = P (1+i)^n can anybody point me in the right direction, cause i dont understand what variable are we suppose to find.

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Originally Posted by magmagod

a car typically loses one half of its value in its first four years. What is the annual depreciation rate as a percentage?

i need help solving this using the formula...A = P (1+i)^n can anybody point me in the right direction, cause i dont understand what variable are we suppose to find.

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Are you sure it's not

A = P (1-i)^n

with a minus sign?

Use P = initial value, A = final value, n = 4. You will set A = P/2, so the P's will cancel and you can solve for i.