Step-by-step explanation:
Given data
face value = $900
rate = 2%
time = 5 year
to find out
how much would you pay today
solution
we know present value formula that is
present value = face value × e^-rt
put all value here rt = 0.02(5) = 0.10
present value = face value × e^-rt
present value = $900 × e^-0.10
present value = $814.35
so pay today is $ 814.35