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Income from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $21,000 in years 1 through 5 and then decreased geometrically by 9% per year through year 7. Determine the equivalent annual income in years 1 through 7, using an interest rate of 8% per year. Your answer: $20,367 $21,671 $17,515 $26,796

Income from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $21,000 in years 1 through 5 and then decreased geometrically by 9% per year through year 7. Determine the equivalent annual income in years 1 through 7, using an interest rate of 8% per year. Your answer: $20,367 $21,671 $17,515 $26,796

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Income from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $21,000 in years 1 through 5 and then decreased geometrically by 9% per year through year 7. Determine the equivalent annual income in years 1 through 7, using an interest rate of 8% per year. Your answer: $20,367 $21,671 $17,515 $26,796 $11,491 $21,000 $106,036 $15,148 26 Calerda Taks Caunes
Transcribed Image Text:Income from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $21,000 in years 1 through 5 and then decreased geometrically by 9% per year through year 7. Determine the equivalent annual income in years 1 through 7, using an interest rate of 8% per year. Your answer: $20,367 $21,671 $17,515 $26,796 $11,491 $21,000 $106,036 $15,148 26 Calerda Taks Caunes
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