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iren [92.7K]
2 years ago
14

A new game system was priced at $500 when it was introduced to the market. Over the

Mathematics
1 answer:
muminat2 years ago
8 0

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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