SOLUTION: An investment decreases by 50% over an 8-year period. At what effective annual percent rate does it decrease?

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: An investment decreases by 50% over an 8-year period. At what effective annual percent rate does it decrease?      Log On


   

Question 1175075: An investment decreases by 50% over an 8-year period.
At what effective annual percent rate does it decrease?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
This is (1-x)^8=0.50
Can do it by logs or by the 8th root of both sides, since we have calculators.
0.50^(1/8)=0.9170
1-x=0.9170
x=0.0830 or 8.3% annual rate of decrease.