You have estimated that your current computer is going to last one more year. Then you will need to buy a new computer. You have some cash now but it does not make sense to buy a computer if you do not need one. You have estimated that a year from now the computer you want will cost $1,000. If the bank pays you 2% for depositing funds into an interest bearing account, how much will you need to deposit now in order for the account to be worth $1,000 in one year (present value)?