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 smartphone app was $35,000 in years 1 through 3 and then decreased geometrically by 17% 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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First we need to calculate the present value of each years ... View the full answer