CD players are going out of fashion in the modern era. If 400,000 CD players were sold this year and sales are declining at a rate of 17% per year, how many will be sold 3 years from now?
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Sales decline at a constant rate of 17% per year and we take the initial year’s sale to be 400,000 CD players. To calculate the rate of CD players sold, we subtract 100% and 17%. So, rate of selling is 83% of the previous year sales.
After the first year, sales will have become 332,000 CD players.
After the second year, sales will have become 275,560 CD players.
After the third year, sales will have become 228,715 CD players approximately.
Hence, the number of CD players sold after three years is 228,715 units.
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