Answer:
$797.19
Step-by-step explanation:
We use the formula for Future Value of Money
[tex]FV=PV(1+i)^n\\\\[/tex]
FV=1,000
i=12%
n=2
[tex]FV=PV(1+i)^n\\\\1,000=PV(1+0.12)^2\\\\1,000=PV(1.12)^2\\\\\frac{1,000}{(1.12)^2} =PV\\\\797.19=PV[/tex]
So the initial investment has to be 797.19
