anonymous
  • anonymous
Can some one help I want to know if im doing it right the price of products may increase due to inflation and decrease due to depreciation
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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chestercat
  • chestercat
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jim_thompson5910
  • jim_thompson5910
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jim_thompson5910
  • jim_thompson5910
|dw:1446604053070:dw|
jim_thompson5910
  • jim_thompson5910
1 plus something = 0.82 what is that "something" ?

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jim_thompson5910
  • jim_thompson5910
hopefully you agree it's r = -0.18 yes? or no?
jim_thompson5910
  • jim_thompson5910
The value of r is negative, so that means we have decay (and not growth). In terms of money, this means we have deflation/depreciation in value and price.
jim_thompson5910
  • jim_thompson5910
r = -0.12 means we have a 12% decrease in price per year
jim_thompson5910
  • jim_thompson5910
sorry I meant -0.18 and 18%
jim_thompson5910
  • jim_thompson5910
so the price is decreasing by 18% each year
jim_thompson5910
  • jim_thompson5910
ok great
jim_thompson5910
  • jim_thompson5910
what happens when you divide the second term (3136) by the first term (5600) ?
jim_thompson5910
  • jim_thompson5910
3136/5600 = ??
jim_thompson5910
  • jim_thompson5910
and when you divide the third term by the second term, what do you get?
jim_thompson5910
  • jim_thompson5910
yes B is decaying faster
jim_thompson5910
  • jim_thompson5910
yes that is correct

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