Question $22(0\mathrm{.}5$ points$)$

Imagine your best friend has just had a first baby and asks you to become godparent.

You offer to put together some money to finance the child's driver's license: either

you give the new parents $$1,300$ today or $$2,000$ in $16$ years. Given the $8\mathrm{.}0\%$

interest rate on savings, what is the current worth of that future money?

Instructions: Round the result to two decimal places and do not put the $"$$$"$ symbol in

the answer box. For example if you get a result of $$852\mathrm{.}6578$ then write $852\mathrm{.}66$ in

the answer box below.

Your Answer:

Answer