Answer:
$891.86
Step-by-step explanation:
For this question, we use the Present value formula that is to be shown on the attachment. Kindly find it below:
Given that,
Future value = $1,000
Rate of interest = 12%
NPER = 5 years
PMT = $1,000 × 9% = $90
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $891.86