Income from the sale of application software (apps) is usually constant for several years and then decreases

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Income from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $38,000 in years 1 through 3 and then decreased geometrically by 15% per year through year 7. Determine the equivalent annual income in years 1 through 7, using an interest rate of 10% per year.


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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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