Answer
$PV=\$ 18,181.82$
Work Step by Step
The future value of an investment of $PV$ dollars at an annual simple interest rate of $r$ for a period of $t$ years is $FV=PV(1+rt)=PV+INT$ .
Given:
r = 0.0$5$ ($ 5\%$ per year),
FV= 20,000,
t = 2 (years),
we solve $FV=PV(1+rt)$ for PV:
(divide both sides by (1+rt) )
$ PV=\displaystyle \frac{FV}{(1+rt)}=\frac{20000}{1+(0.05)\cdot 2}\approx$18181.8181818...
rounded to the nearest cent: $PV=\$ 18,181.82$