Posted by Anonymous on Wednesday, September 21, 2011 at 8:12pm.
Where in the world did you get 10 in the 10-1
should have been 4-1
T4 = 2.8(.85)^3 = 1.719 or 1.72
for growth to be .5
.5 = 2.8(.85)^(n-1)
divide by 2.8
.17857.. = .85^(n-1)
take log of both sides
log (.17857..) = log [.85^(n-1)]
log (.17857..) = (n-1)log [.85]
n-1 = log (.17857..) / log [.85] = 10.6
n = 11.6
in year 11, growth = 2.8(.85)^10 = .5512
in year 12, growth = 2.8(.85)^11 = .468
so what do you think?
So that would be Year 12.
yes
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