doubt in learning curve theory-help

in ca final cost management, in padukas saravana prasath book,page 19.4,sum no3,i have doubt.....

question:a plane costs 1500 lacs to manufacture and exhibits an 85%learning curve .calculate the cost of each of the first five planes.

cost of first 5 planes:

answer : 1.            1500 lacs*1.000                        =          1500lacs

                 2              1500lacs*0.8500                      =          1275lacs

                 3               1500lacs*0.7730                     =          1159.5lacs

                 4                1500lacs*0.7230                    =          1084.5lacs  

                5                 1500lacs*0.6860                    =          1029lacs

my doubt is how did the numbers 1.000,.8500,.7730,.7230,.6860 come........how to get those numbers????if anyon eknows the answer..please explain in detail....

Replies (2)

please someone help me out!!!

its as follow---

1*100%=1.00
1* 85%=0.85

0.85*85%=0.773

0.773*85%=0.732

0.732*85%=0.686

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