Answer:
$942.60
Step-by-step explanation:
Future Value (FV)= $1,000
Number of periods (n)= 2
Interest rate (i)= 3% = 0.03
To calculate the present value (PV), we need to use the following formula:
FV= PV*(1í)^n
Isolating PV:
PV= FV/(1+i)^n
Pv=1,000/(1.03^2)
$942.60
Hope this helps, have a great day :)
