.978 = 1 - .022 , since it represents a decrease
= 100% - 2.2%
the actual "formula" could be written as
PD = 600(1 - .022)^t
Had there been an increase of 2.2% you would have
600(1 + .022)^t
PD= 600(0.978)^t
PD is decreasing at 2.2% per year.
How did they get 2.2%
1 answer