Question

A new game system was priced at $800 when it was introduced to the market. Over the next few years, the cost decreased by 7% each month. Approximately how many months did it take for the price to fall to $300?

Answer 1

168 months

Explanation:

Given data

Price= $800

Rate of decrease= 7%

New price= $300

Applying the compound interest formula for time t

t= ln(A/P)/r

t= ln(300/800)/0.07

t= ln(0.375)/0.07

t= 0.9808/0.07

t= 14.011 years

Hence in months

=14.011*12

= 168.1

=168 months