Answer
$\$ 654.98$
Work Step by Step
Recall:
Present Value Formula for Continuous Compounding
$$P= A e^{-r t}$$
where
$A:$ Amount to be recieved after $t$ years
$P:$ Present value
$r:$ Annual interest rate
$t:$ Number of years
The given problem has:
$A = \$ 800, r=0.08, t=2.5$
Thus, using the given vaues and the formula above gives:
$P = \$800 \times e^{-0.08 \times 2.5}$
$P \approx \$ 654.98$
