Answer:
the amount charged is $178.43
Explanation:
The computation of the price charged is shown below:
As we know that
Future value = Present value × (1 + rate)^number of years
So,
Present value = Future value ÷ (1 + rate)^no of years
= $1,000 ÷ (1 + 0.09)^20
= $1,000 ÷ 1.09^20
= $178.43
Hence, the amount charged is $178.43
