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Math Help - Interest problem, simple

  1. #1
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    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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  2. #2
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    Quote Originally Posted by magmagod View Post
    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.
    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.
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