The formula to calculate the Decay Factor (DF) is:
\[ \text{DF} = 1 - \frac{\text{DR}}{100} \]
Where:
The decay factor is a measure of the reduction in value or quantity over time, expressed as a percentage. It is calculated by subtracting the rate of decay divided by 100 from 1. This factor is used in various fields such as finance, physics, and engineering to model the decrease in value or quantity.
Let's consider an example:
Using the formula to calculate the Decay Factor:
\[ \text{DF} = 1 - \frac{20}{100} = 0.80 \]
This demonstrates that with a rate of decay of 20%, the decay factor would be 0.80.