Anonymous
Anonymous asked in Science & MathematicsMathematics · 6 years ago

Using the depreciation formula V=P(1-r)^n. How do you find r?

Say if P=29990 and V=6000 and n=11

4 Answers

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  • 6 years ago
    Best Answer

    V = P(1-r)^n,

    P(1-r)^n = V, ===> (1-r)^n = V/P,

    OR,

    1 -r = (V/P)^1/n,

    OR,

    r = 1 - (V/P)^1/n >============================< ANSWER

    AND

    For, P=29990 and V=6000 and n=11,

    r = 1 - (6000/29990)^1/11 = 1 - (0.2000667)^1/11,

    OR,

    r = 1 - 0.18188 = 0.98181 >===========================< ANSWER

  • 6 years ago

    First replace formula with given numbers

    6000 = 29990(1-r)^11

    6000/29990 = (1- r)^11

    using calculator take 11th root of both sides

    0.8639 = 1 - r

    r = 1 - 0.8639

    r = 0.1361

    this is in decimal form so multiply by 100 to find percentage rate of depreciation

    r = 13.6%

  • 6 years ago

    V=P(1-r)^n

    substitute the known values:

    6000 = 29990(1-r)^11

    divide by 29990

    6000/29990 = (1-r)^11

    raise to 1/11 power

    (6000/29990)^(1/11) = 1-r

    (6000/29990)^(1/11) - 1 = -r

    r = -(6000/29990)^(1/11) + 1

    = 0.1361

  • 6 years ago

    Replace the values given;

    6000 = 29990 ( 1 - r ) ^ 11 .......................... Divide by 29990

    6000 / 29990 = ( 1 - r ) ^ 11 ........................ Take the 11th root

    11 ROOT OF ( 6000/ 29990 ) = 1 - r ............ Solve for r

    ................ r = 1 - 11th Root ( 6000/ 29990 )

    Now you need a scientific calculator to do the division , then take the 11th root. ( You can also raise it to the 1/ 11 power )

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