Answer:
$5,027
Explanation:
Saving for the Year = $900
Future Value of Total Saving = 900 + (900 x 1.08^1) + (900 x 1.08^2) + (900 x 1.08^3) + (900 x 1.08^4) + (900 x 1.08^5) + (900 x 1.08^6) + (900 x 1.08^7) + (900 x 1.08^8) + (900 x 1.08^9)
Future Value of Total Saving = $900 + $972 + $1049.76 + $1133.74 + $1224.44 + $1322.40 + $1428.19 + $1542.44 + 1665.84 + $1799.10 = 13037.91
Present value of Total Saving = 13037.91 / (1+0.1)^10
Present value of Total Saving = 5026.68