Question

Lyle bought a baseball card for $800. If the value of the card decreases by 1.5% each year, find the value of the card after 12 year

A)615.92
B)642.85
C)667.31
D)683.72

Answer 1

FV= $669.11

Explanation:

Giving the following information:

Purchase price (PV)= $800

Decrease value (d)= 1.5% per year

Number of periods (n)= 12 years

To calculate the value of the card after 12 years, we need to use the following formula:

FV= PV / (1 + d)^n

FV= 800 / (1.015^12)

FV= $669.11