Answer: $19,864.60
Step-by-step explanation:
The future value formula could have been used to find the price in the 6th year. As we now know the price, the formula can now be used to find the original price.
Price at 6th year = Original price * ( 1 + rate) ^ number of years
12,045 = Og * ( 1 - 8%) ⁶
12,045 = Og * 0.606355001344
Og = 12,045 / 0.606355001344
Og = $19,864.60
Rate is subtracted because price was reducing.
