Answer
$\$941.19.$
Work Step by Step
Use the given formula $A=P(1-r)^n$.
$P$ is the principal, the amount now, $r$ is the annual inflation rate, $n$ is the number of years, $A$ is the amount $P$ will be worth back after $n$ years:
Here
$P=\$1000$
$r=0.02=2\%$
$n=3$ years
Hence, $A=\$1000(1-0.02)^3=\$941.19.$
