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What is the mathematical definition of "Compound decay or depreciation"?
in Economics and Finance by Gold Status (32,009 points) | 68 views

1 Answer

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Compound decay or depreciation (reducing balance depreciation):
\[
A=P(1-i)^{n}
\]

Where
\(P\) is the principal (original sum of money invested or borrowed)
\(i\) is the interest (rate per period)
\(n\) is the number of years (no of periods)
\(A\) is the final amount
by Gold Status (32,009 points)

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