In 2019, a total of 100, 000 new micro enterprises were created in Zed Republic. If new micro enterprises fail at a continuous rate of 12% per annum, how many years will it take for the newly created firms to fall to 50, 000 firms?
Answer:
Total startup = 100,000
Fail at a rate of 12% per annum
We need to calculated number of years (N) such that it falls to 50,000
50,000 = 100,000 (1 - 0.12)N
0.5 = (1 - 0.12)N
N = 5.43 years which is 65.15 months
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