The current price on a 60-inch flat panel LCD HD television is $2,300. Big screen HD television prices have dropped at an average rate of 9% per year in recent years

If you expect this trend to continue, how much will this style of television cost in three years?
A) $2,979
B) $2,300
C) $1,958
D) $1,733


Answer: D
Explanation: D) Expected future value of television = $2,300 ∗ (1 - 0.09)3 = $1,733.21
MODE = END
INPUT 3 9 -2,300 0 ?
KEY N I/Y PV PMT FV
CPT 1,733.21

Business

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