A new game system was priced at $500 when it was introduced to the market. Over the
1 answer:
Answer:
FV= $436.72
Step-by-step explanation:
Giving the following information:
Initial cost (PV)= $500
Decrease rate (d)= 7% per year
Number of periods (n)= 2 years
<u>To calculate the future value after 2 years, we need to use the following formula:</u>
FV= PV / (1 + d)^n
FV= 500 / (1.07^2)
FV= $436.72
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