# maths economics

• May 22nd 2009, 06:33 AM
jwish
maths economics
100%- 5%= 95% so the value is multiplied by .95 every year. If the original value is V, the value after n years is $0.95^xP$ so you need to solve $0.95^xP= 0.5P$. The "P" cancel and taking logarithms of both sides, x log 0.95= log 0.5 so x= (log 0.95)/(log 0.5).