For 10 independent years: (0.97)^10 ≈ <<0.97^10=0.737>>0.737.

Sun, 03 May 2026 11:52:55 +0000

Exploring the Power of Compound Decay: How (0.97)^10 ≈ 0.737 Over Ten Years Over the past decade, many systems—from finance to technology—have experienced gradual, consistent change rooted in compound decay. One striking example is the expression (0.97)^10 ≈ 0.737, illustrating how a seemingly small annual rate erodes value over time. ### What Does (0.97)^10 Mean Over Ten Years? The formula (0.97)^10 calculates the value remaining after ten years when something decays at a consistent 3% per year. Here, 0.97 represents a 97% retention rate: losing 3% annually. When raised to the 10th power, this reflects compounded annual loss.