Answer:
PV=454.54
Explanation:
This problem can be solved applying the concept of future value, the 500 represents money in the future an the 10% is how that money is valued over time
[tex]FV=PV*(1+i)^{n}[/tex]
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
[tex]500=PV*(1+0.1)^{1}[/tex]
solving for PV we have:
PV=454.54
