Answered

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Present Value of $200,000 that is expected to be received at the end of one year at a discount rate of 25% per year is:

Sagot :

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Answer:

PV= $160,000

Explanation:

Giving the following information:

Future Value (FV)= $200,000

Discount rate (i)= 25%

Number fo periods (n)= 1 year

To calculate the present value (PV), we need to use the following formula:

PV= FV / (1+i)^n

PV= 200,000 / 1.25^1

PV= 200,000/1.25

PV= $160,000

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