Question

The compact disc format has been declining in popularity, and one music executive has predicted that CD sales will decrease by 20% per year. If the executive's company sold 29,000,000 CDs this year, how many will the company sell 9 years from now?

Answer 1

Answer: 3,892,314 CDs

Explanation:

You can find this using the future value formula:

Future value = Amount * ( 1 + rate) ^ number of years

Amount = 29,000,000

Rate = -20% because it is decreasing

Number of years = 9

CDs sold in 9 years will therefore be:

= 29,000,000 * ( 1 - 20%) ⁹

= 3,892,314 CDs