Answer:
$9587.16
Step-by-step explanation:
We are given that
Today recieve prize=$5000
Recieve in a year from now=$5000
Total prize value=$5000+$5000=$10000
Consider
Rate of interest earn annually on investment ,r=9%=0
Then , we have to find the value of prize worth today.
Present value=[tex]Today\;prize\;value+Yearly\;prize\;value{1+r/100}[/tex]
Using the formula
Present value=[tex]5000+5000{1+9/100}=5000+4587.16[/tex]
Present value=$9587.16
