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Some quantities decrease by a fixed proportion (not fixed amount) in each time period. Typical examples used in school mathematics are depreciation or radioactive decay.

The value of an asset (often a car) is assumed to lose x% of its value every year. That is, at the end of each year, its value is (1-x/100) times what it was a year earlier. Similarly, radioactive substances lose y% of their mass through nuclear decay in each time period.

The factor (1-x/100) is known as the decay factor.

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