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23 October, 12:07

The value of a dvd player decreases by 60% each year. If you purchased this dvd player today for $180, how much would the player be worth 2 years later?

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  1. 23 October, 12:17
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    The formula is

    A=p (1-r) ^t

    A future value?

    P present value 180

    R rate of decreases 0.6

    T time 2 years

    A=180 * (1-0.6) ^ (2)

    A=180 * (0.4) ^ (2)

    A=28.8
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