The amount a person would have to deposit today (present value) at an interest rate of 5 percent to have $1,000 five years from now.

The amount a person has to deposit today for it to be $1000 in 5 years at 5% is $783.52

Explanation:

We need to calculate what amount deposited today and compounded at 5% per year would add up to $1000 1 year from now, for that we will have to discount $1000 by 5% and 5 years using this formula.

PV = FV / (1+Interest rate) ^N

FV = 1,000

Interest rate = 5%

N = 5

PV = 1,000 / (1.05) ^5

PV = 783.52