Answer:
$ 7,835.26
Step-by-step explanation:
Let x be the value of his money five years ago,
Given,
Annual rate of interest = 5 %,
Time = 5 years,
So, the amount after 5 years,
[tex]A=x(1+\frac{5}{100})^5[/tex]
[tex]=x(1+0.05)^5[/tex]
[tex]=x(1.05)^5[/tex]
According to the question,
[tex]x(1.05)^5=10000[/tex]
[tex]\implies x = 7835.262\approx 7835.26[/tex]
Hence, the value of his money five years ago was $ 7,835.26.
