Financial Maths, SMB-016 What amount must be invested now at 3% per annum, compounded annually, so that in two years it will have grown to $20 000? (2 marks) --- 4 WORK AREA LINES (style=lined) --- Show Answers Only `$18\ 851.92` Show Worked Solution `text(Using)\ \ FV = PV(1 + r)^n` `r = 3text{%}, \ n=2` `20\ 000` `= PV(1 + 0.03)^(2)` `:.PV` `= (20\ 000)/1.03^(2)` `= $18\ 851.92`