Answer:
A
Step-by-step explanation:
Price lowers so more people end up buying the product when it exceeds the demand.
Since this is a compound interest, we will use this formula: A = P(1+r/n)^n*t
P = $1000 --> the amount that we start with
r = 8% --> this is the rate
n = 4 --> This is because it is compounded quarterly.
t = 5 --> the amount of years
A = 1,000.00(1 + 0.02)^(20)
So our final value after inserting those numbers in the equation is: $1,485.95.