An asset’s value was $1,439 7 days ago. If the asset’s value has uniformly increased and its value today is $1,522, what was its value 2 days ago?

Question

An asset’s value was $1,439 7 days ago. If the asset’s value has uniformly increased and its value today is $1,522, what was its value 2 days ago? would you use geometric progression ?

Answer 1

Hello, thank you for taking the time to post your question!

You want to use the information given in the question in order to find what the per day change is … it will be constant since it’s a uniform distribution. In this case we have

(1522 – 1439)/7 = 83/7 = 11.86 per day, meaning that the asset’s value increased by approximately $11.86 per day.

That means that the value 2 days ago is

1522 – 2(11.86) = 1522 – 23.72 = 1498.28

Meaning that the value 2 days ago was $1498.28

I hope that helps you get moving in a better direction on this type of question! Feel free to reach out if you have any additional questions beyond that :)

Answer 2

It is not the geometric progression. It is said the increase is uniform, whereas the increase in the case of geometric progression is exponential.

 

Uniform increase means that the amount the asset increased by each day is the same for every day. Thus if the asset increased from $1,439 to $1,522 in 7 days, it means it increased by (1522-1439)/7=83/7 in one day. Two days ago the asset was 2*83/7 less than today, so it was 1522-166/7≈$1498.