Answer:
$2105
Step-by-step explanation:
Given that
Amount of savings = 2000
Price level at beginning = 100
Price level at the end = 95
Recall that
Real value = Amount ÷ (ending period price level ÷ beginning period price level)
Thus,
Real value = 2000 ÷ (95/100)
= 2000 ÷ (0.95)
= $2105.26
Thus, the real value of the savings at year end is $2105