Answer:
$857
Explanation:
Calculation for the present value
Using this formula
Present value = FV / (1+ r)^ n
Let plug in the formula
Present value= 1,000 / (1+.08)^2
Present value= 1,000 / (1.08)^2
Present value= 857.34
Present value=$857 (Approximately)
Therefore the Present value is $857
