Question

What is the decay factor that corresponds to a product that decreases its value first by 15%, and then decreases by 32% of its value, and finally decreases by 99% of its value?

Answer 1

The answer for this is 0.00578.

Answer 2

The decay factor would be 0.00578.

Explanation:

Let x be the initial value,

Then after decreasing the value by 15 %,

New value = x - 15% of x =
`x-(15x)/(100)` = x - 0.15x = 0.85x,

Again decreasing by 32%,

New value = 0.85x - 32% of 0.85x = 0.85x - 0.32 × 0.85x = 0.578x,

Finally decreasing by 99%,

Final value = 0.578x - 99% of 0.578x = 0.578x - 0.99 × 0.578x = 0.00578x,

Since, the value of x is decreased by multiplying with 0.00578,

Hence, the decay factor would be 0.00578.