Final answer:
To have $10,000 in two years at an 8% annual interest rate, you need to invest approximately $8,573.07 today. This is calculated using the present value formula for compound interest.
Step-by-step explanation:
To calculate how much you need to invest today to have $10,000 in two years with an annual interest rate of 8%, you use the formula for the present value of a future amount at compound interest:
The formula is:
PV = FV / (1 + r)^n
Plugging the values into the formula:
PV = $10,000 / (1 + 0.08)^2
PV = $10,000 / (1.08)^2
PV = $10,000 / 1.1664
PV = $8,573.07 (approximately)
Therefore, you need to invest approximately $8,573.07 now to have $10,000 in two years if the interest rate is 8% compounded annually.