Calculating Value Over Time 2
View the Lesson | MATHguide homepage Updated June 22nd, 2023


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Problem:   A sweater will depreciate in value at a 7.8% annual rate. Currently, it is worth $300. When will its value be $96?

  Calculate the time (to the nearest tenth in years) by using this formula.

A = a(1 + r)t

 
Solution:  
= ( 1 - )t
 
= ( )t
 
= ( )t
 
log  =   t
  
 
  t