Discount factors and depreciation
Unfortunately, not everything grows in value over time.
In fact, many assets depreciate, or lose value over time. To simulate this, you can simply assume a negative expected rate of return.
Example:
Calculate the final depreciated value of an initially $10,000 car which declines in value by 3% per year for 10 years:
\( \$10,000*(1 + -0.03)^{10} = \$7,374.24 \)
Deze oefening maakt deel uit van de cursus
Introduction to Financial Concepts in Python
Praktische interactieve oefening
Probeer deze oefening eens door deze voorbeeldcode in te vullen.
# Calculate the future value
initial_investment = 100
growth_rate = ____
growth_periods = ____
future_value = ____
print("Future value: " + str(round(future_value, 2)))