The price of the latest incredible iThing from Apple starts at $200 when it is first released. Every year it gets better but the price goes up 8%. What is the price after 20 years? [You can see problems just like this one in the Gateway Exams section of our website. The screencast shows how to solve this among others].

Guest Jun 24, 2018

#1**+1 **

You can use a formula like this to solve that:

FV = PV x [1 + R]^N, where FV=Future value, PV=Present value, R=Rate(of interest), N= Number of periods.

FV = 200 x [1 + 0.08]^20

FV = 200 x[1.08]^20

FV = 200 x 4.6609571........

**FV = $932.19 - The price of Apple's ****iThing**** after 20 years.**

Guest Jun 24, 2018

edited by
Guest
Jun 24, 2018

#1**+1 **

Best Answer

You can use a formula like this to solve that:

FV = PV x [1 + R]^N, where FV=Future value, PV=Present value, R=Rate(of interest), N= Number of periods.

FV = 200 x [1 + 0.08]^20

FV = 200 x[1.08]^20

FV = 200 x 4.6609571........

**FV = $932.19 - The price of Apple's ****iThing**** after 20 years.**

Guest Jun 24, 2018

edited by
Guest
Jun 24, 2018