Assume the current interest rate is 25%. The present value of $2,000 to be received in one year would be

Name: Assume the current interest rate is 25%. The present value of $2,000 to be received in one year would be
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The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods. Here, FV = $2,000, r = 25% or 0.25, and n = 1. So, PV = $2,000 / (1 + 0.25) = $2,000 / 1.25 = $1,600.

Assume the Current Interest Rate Is 25