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What is the multiplier for 1%, and 2% decay?​

User Rave
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1 Answer

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"The multiplier for decay is given by the formula:

multiplier = (1 - (decay rate/100))^n

where "decay rate" is the percentage rate of decay per time period (usually per year), and "n" is the number of time periods.

For a decay rate of 1%, the multiplier would be:

multiplier = (1 - (1/100))^n = 0.99^n

For a decay rate of 2%, the multiplier would be:

multiplier = (1 - (2/100))^n = 0.98^n

The value of the multiplier depends on the number of time periods "n". For example, if we want to find the value of an initial quantity after 3 years of 1% decay, we would use the multiplier of 0.99 raised to the power of 3:

multiplier = 0.99^3 = 0.9703

This means that the final quantity would be 97.03% of the initial quantity.

Similarly, if we want to find the value of an initial quantity after 5 years of 2% decay, we would use the multiplier of 0.98 raised to the power of 5:

multiplier = 0.98^5 = 0.9039

This means that the final quantity would be 90.39% of the initial quantity." (ChatGPT, 2023)

User Martin Freedman
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