Answer:
P = $ 766.28
Explanation:
present value = ?
Future value = $ 2000
time = 5 years
compounded annually at the rate of = 10 %
[tex] A = P + P(1+\dfrac{r}{100})^t[/tex]
[tex] 2000 = P + P(1+\dfrac{10}{100})^5[/tex]
2000 = P + 1.61 P
2.61 P = 2000
P = $ 766.28
hence, the present value of amount invested to get the future value of $2000 is equal to P = $ 766.28
