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If you decay at 25% per decade , then at the end of each decade you have 75% of what you started with at the beginning of the decade. So after n decades, the original amount gets multiplied by
.75^n
If t = number of years, then n = t/10, so after t years the original amount is multiplied by
.75^(t/10)
This is the same as
[.75^(1/10)]^t = .972^t
(Instead of dividing by 10, we take the tenth root.)
That is , at the end of each year, we have 97.2% of what we had at the start of the year.
So the annual decay rate is 1 - .972 = .028, or 2.8% per year.
.75^n
If t = number of years, then n = t/10, so after t years the original amount is multiplied by
.75^(t/10)
This is the same as
[.75^(1/10)]^t = .972^t
(Instead of dividing by 10, we take the tenth root.)
That is , at the end of each year, we have 97.2% of what we had at the start of the year.
So the annual decay rate is 1 - .972 = .028, or 2.8% per year.