Answer:
845.6306
Step-by-step explanation:
Firstly this is annuity based
Let, investment at beginning of year = x
Then value at year 1 end = x + (8.2% [tex]\times[/tex] x)
Value at end of year 2 = (x + 0.082x) + (8.2% [tex]\times[/tex] (x + 0.082x))
Now this value = $990
Therefore,
990 = (x + 0.082x) + ((x + 0.082x) [tex]\times[/tex] 8.2%)
990 = x + 0.082x + 0.082x + 0.006724x = 1.170724x
x = 990/1.170724 = 845.6306
