Question

What is the decay factor that corresponds to a product that decreases its value first by 20%, and than decreases by 40% of its value, and finally decreases by 62% of its value?

Answer 1

(1-0.2)(1-0.4)(1-0.62) = (0.8)(0.6)(0.38) = 0.1824

Answer: 0.1824

Answer 2

Answer: The decay factor that corresponds to a product is 18.24%.

Step-by-step explanation:

Since we have given that

Rate  of decrement firstly = 20%

Rate of decrement secondly = 40%

Rate of decrement finally = 62%

As we know that

Decay factor is given by

$(1-\dfrac{r_1}{100})(1-\dfrac{r_2}{100})(1-\dfrac{r_3}{100})\\\\=(1-0.20)(1-0.40)(1-0.62)\\\\=0.80\times 0.60\times 0.38\\\\=0.1824\\\\=18.24\%$

Hence, the decay factor that corresponds to a product is 18.24%.