Answer
${$82,645}$
Work Step by Step
This time, we are not given the principal balance, but rather, we are given the final balance.
Recall the form of an exponential equation is $ab^{x}$, where a is the principal balance, b is the ratio, and x is time.
We are given b (1.1) because the interest rate is 10%, so the balance is multiplied by 1.1 each year, and time is two years.
Plugging these values in, we get ${$100,000} = a(1.1)^{2}$
Simplifying, ${$100,000} = 1.21a$
Divide both sides of the equation by 1.21 to solve for $a$ and we get, $a ={$82,645}$
So, you must invest ${$82,645}$ to accomplish your goal.
